The Karnataka High Court passed an interim stay on the investigation procedure against Union Finance Minister Nirmala Sitharaman and other high-profile leaders of the BJP as part of the extortion allegations, which are linked with allegations of extortion in the Electoral Bond Scheme. The allegations were made in a complaint by one activist, Adarsh R. Iyer, who accused Sitharaman and others of persuading corporate donors to donate via electoral bonds through threats.
Justice M. Nagaprasanna, who presided over the case, stayed the investigation until a further decision was made, saying essential legal requirements regarding extortion had not been satisfied. According to the court, no direct threat against the complainant was framed, which was necessary for Section 286 of the Bharatiya Nyaya Sanhita (BNS), which deals with extortion-related crimes. Continuing with an investigation without adequately weighing these factors, said the judge, might lead to abuse of the process of law.
Allegations and Legal Battle
The complaint alleges that officials from the Enforcement Directorate (ED), in collaboration with BJP leaders, requested several corporations, including Vedanta and Aurobindo Pharma, to purchase electoral bonds under threat of ED raids. The scheme, earlier this year ruled unconstitutional by the Supreme Court, has been at the centre of political and legal controversy.
Iyer said the accused held up to INR 80 billion in damages via those modes of illegal practice. Advocate Prashant Bhushan, appearing for the complainant, pleaded that to make the companies buy electoral bonds under fear is nothing other than classic extortion.
Bharatiya Janata Party’s Response
BJP leaders, including Nalin Kumar Kateel, the former Karnataka BJP chief and one of the accused, have filed petitions praying for the case to be quashed. Senior Advocate KG Raghavan, representing Kateel, characterised the accusations as politically motivated: “There is no legal basis for claiming extortion in the mere process of buying electoral bonds.” The next hearing is scheduled for October 22, after which both sides will submit a proposal on probable extortion.
The case has spun widespread political controversies following Congress leader Jairam Ramesh’s demand for her resignation. Ramesh has pilloried the BJP regarding the purchasing scheme of electoral bonds and has highlighted holding those involved in the clash accountable. As the case develops, it could establish important precedents on the legal limits of electoral bond transactions and the use of central agencies for political purposes.
Thus, The investigation is paused, giving temporary respite to Sitharaman and other accused leaders until the next hearing date. However, the future of the case remains unsure under rising tensions, both within the law and the political party against one another.
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