The Karnataka High Court is deliberating a plea to dismiss extortion charges against BJP leaders, including Nirmala Sitharaman, linked to the Electoral Bonds scheme. The case arose from a complaint by activist Adarsh R Iyer, alleging illegal donations under duress. The court has temporarily stayed the investigation while assessing the validity of the complaint and the extortion claims.
The Karnataka High Court has reserved its decision on a plea to quash a criminal case accusing senior Bharatiya Janata Party (BJP) leaders, including Union Finance Minister Nirmala Sitharaman, of extortion and other offences in connection with the controversial Electoral Bonds scheme. The case, which involves BJP leaders such as JP Nadda and Nalin Kumar Kateel, stems from allegations made in a private complaint filed by activist Adarsh R Iyer.
Justice M Nagaprasanna had earlier stayed the investigation in this case after BJP leader Nalin Kumar Kateel challenged the registration of the First Information Report (FIR) against Sitharaman and others. On Wednesday, the Court confirmed that the interim relief would continue until final orders are issued, as it reserved its decision on the plea.
The FIR was registered after the XLII Additional Chief Judicial Magistrate at Bengaluru took cognizance of the complaint filed by Iyer. The complaint alleges that BJP leaders, in connivance with certain Enforcement Directorate (ED) officials, extorted private firms to make illegal donations to the BJP through the Electoral Bonds scheme, which was struck down by the Supreme Court in February 2024. Iyer claims that these actions resulted in illegal gains amounting to over ₹8,000 crore.
The complaint also refers to alleged instances where ED raids on companies like Vedanta, Sterlite, and Aurobindo Pharma were used to pressure company proprietors into making donations via the Electoral Bonds scheme.
Kateel, in his petition challenging the FIR, has argued that the case is politically motivated and that he and the other accused have been “falsely implicated” with an ulterior political motive.
During the Court’s hearing, Advocate Prashant Bhushan, representing the complainant, argued that there was no legal bar preventing citizens from initiating criminal proceedings in cases of grave offences. Bhushan emphasized that such extortion undermines the level playing field in electoral politics, particularly when large sums are allegedly raised through electoral bonds.
The Court questioned whether the allegations in the complaint met the requirements for the offence of extortion, with Bhushan asserting that threats of jail and actions under the Prevention of Money Laundering Act (PMLA) constituted extortion.
On the other hand, Senior Advocate KG Raghavan, appearing for Kateel, argued that the case failed to meet the criteria for extortion. He pointed out that the victim had not appeared in court and that the complaint did not indicate any direct benefit to the accused. The Court also questioned who received the alleged extorted money, with Raghavan stating,
“We don’t know. The complaint doesn’t show the accused received the money.”
This case is drawing attention due to its implications on the Electoral Bonds scheme, which has been controversial for its lack of transparency and the potential for corruption. The Karnataka High Court’s upcoming decision will be crucial in determining whether the extortion charges hold any merit and whether this case will proceed further.
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