Karnataka HC Pauses Investigation Against Sitharaman, BJP Leaders Over Electoral Bond Allegations

The Karnataka High Court has temporarily stayed the probe into extortion claims against Finance Minister Nirmala Sitharaman and BJP leaders related to electoral bonds. The court found the complaint weak and politically motivated, pausing proceedings until further review.

The Karnataka High Court has temporarily halted the investigation against Union Finance Minister Nirmala Sitharaman and several BJP leaders concerning allegations of extortion linked to the electoral bonds scheme. Justice M. Nagaprasanna issued the stay following a petition filed by BJP member Nalin Kumar Kateel, who challenged the criminal complaint against him and others, calling it politically motivated.

The complaint, lodged by Adarsh Iyer, co-president of the Janadhikara Sangharsa Parishad, accused the BJP of extorting ₹8,000 crore through electoral bonds from companies like Vedanta and Aurobindo Pharma. The court found that the basis for the extortion claim under Section 384 of the Indian Penal Code (IPC) was weak, as there was no evidence that the complainant had been coerced into handing over property due to fear.

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Senior Advocate KG Raghavan, representing Kateel, argued that the case lacked merit and was a misuse of legal procedures. On the other hand, Advocate Prashant Bhushan, representing the complainant, contended that the BJP used government agencies to pressure companies into donating via electoral bonds. The High Court decided to pause the investigation until October 22 to allow for further legal review.