Karnataka High Court Halts Investigation Into Nirmala Sitharaman Over Electoral Bonds Allegations
The Karnataka High Court has put a halt to the investigation involving Finance Minister Nirmala Sitharaman and several others accused of extortion related to the electoral bonds scheme. The ruling came after a petition was filed by BJP member Nalin Kumar Kateel, challenging a criminal complaint lodged by activist Adarsh R Iyer.
Justice M Nagaprasanna issued the stay, emphasizing that for extortion to be established under Section 383 of the Indian Penal Code, the informant must demonstrate that they were placed in fear. The Court noted that permitting further proceedings without addressing objections would constitute an abuse of legal processes. Thus, it stayed the proceedings until the next hearing.
Senior Advocate KG Raghavan, representing Kateel, argued that the complaint lacked any substantial allegations of extortion, labeling it as frivolous and a misuse of legal avenues. He contended that the assertion of extortion through government agency manipulation, particularly via electoral bonds, does not align with legal definitions of extortion.
Countering this, Advocate Prashant Bhushan, representing a private respondent, asserted that a strong case for extortion exists. He argued that the situation constitutes classic extortion, as it involves instilling fear of raids and arrests to induce companies to purchase electoral bonds. Bhushan insisted that the case remains valid, asserting that no interim order to stay proceedings is necessary since no coercive actions have yet occurred.
This legal battle follows the registration of an FIR last week against Sitharaman, BJP President JP Nadda, Kateel, unknown Enforcement Directorate officials, and others. This came after a Bengaluru magistrate acknowledged Iyer’s private complaint, which alleged that these individuals colluded to extort funds under the guise of the electoral bonds scheme, benefiting illegally to the tune of over ₹8,000 crores.
Iyer’s complaint indicated that the accused had leveraged their positions and government power to pressure companies like Vedanta, Sterlite, and Aurobindo Pharma into contributing through electoral bonds. After his complaint to the Deputy Commissioner of Police on February 4 went unaddressed, Iyer sought the Court’s intervention.
(With inputs from agency)
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