Karnataka HC Steps In: Probe Against Nirmala Sitharaman, Others In Electoral Bonds Extortion FIR Put On Hold

A single-judge bench of the Karnataka High Court issued a stay on Monday regarding the proceedings against Union Finance Minister Nirmala Sitharaman, former Karnataka BJP chief Nalin Kumar Kateel, and unnamed officials from the Enforcement Directorate (ED) in the 'electoral bonds extortion case' filed by Bengaluru police.

Kateel sought a stay on the investigation and further proceedings in the case. In his petition, senior advocate K.G. Raghavan contended that the complaint did not substantiate any claims of extortion. Conversely, Prashant Bhushan, representing the private complainant, argued that the electoral bonds scheme exemplified extortion, claiming the ED instilled fear among companies to purchase electoral bonds.

The High Court observed, "Section 383 mandates that any informant who approaches the concerned court or the jurisdictional police must have been placed in fear, and due to that fear, should have delivered property to the accused."

The court further elaborated, "Only then can extortion be prima facie established against the accused in relation to the victim. It is a settled principle of law that while criminal law can be initiated by anyone, certain offenses, such as assault, theft under Section 379 of the IPC, or extortion under Section 383 of the IPC, can only be initiated by the aggrieved party."

In its interim order, the Karnataka High Court ruled that "the prima facie ingredients of Section 383 of the IPC are not satisfied in this case for it to constitute an offense under Section 384 of the IPC. Allowing further investigation would constitute an abuse of the legal process... Therefore, further investigation into this matter shall remain stayed until the next hearing date. The matter is scheduled for further hearing on 22.10.2024 at 2:30 PM."

The bench indicated that all arguments presented by Bhushan and others regarding the justification for probing alleged extortion through the electoral bonds scheme will be considered during a hearing following the Dussehra vacation.

The Bengaluru police registered the FIR on Saturday after a private complaint by activist Adarsh Iyer from the NGO Janadhikara Sangharsha Parishath was referred to them by a local court for investigation. The Tilaknagar police filed the FIR under Sections 384 and 120B of the Indian Penal Code, alleging that the Union Finance Minister and others extorted approximately Rs 8,000 crore from corporations through the electoral bonds scheme by threatening action from the Enforcement Directorate.