Karnataka High Court Stays Investigation In FIR Against Nirmala Sitharaman, BJP Leaders Over Alleged Electoral Bonds Extortion

Karnataka High Court has stayed further investigation, till October 22, in a FIR registered against Union Finance Minister Nirmala Sitharaman and others for allegedly extorting money under the guise of electoral bonds.

The development comes in a quashing petition filed by former State BJP President Naleen Kumar Kateel, who is co-accused in the case.

The complaint filed by one Adarsh Iyer alleges that action by government agencies like ED was used to threaten companies and make them buy electoral bonds.

Single judge bench of Justice M Nagaprasanna ordered, "Permitting investigation even prima facie, till the statement of objection are filed by respondent will be abuse of process of law. In that light I deem it appropriate to interdict further investigation in the matter till next date of hearing."

The Court pointed that ingredients of extortion are found in Section 383 of IPC and it mandates, any informant who approaches court or police should be put into fear and should delivered property to the accused.

"It is only then prima facie extortion can be established against the accused. It is a well settled principle that criminal law can be set in motion by anyone but there are provisions in IPC that they can be set in motion by only aggrieved. It is not his (complainants) case that he is put under fear. The complainant in the case at hand wants to project Section 383 of IPC, he is an aggrieved party, which he is not,” it reasoned while ordering stay.

During the hearing, Senior Advocate KG Raghavan appearing for Kateel submitted that putting money in electoral bonds "can never be extortion in eyes of law".

However, Advocate Prashant Bhushan appearing for the complainant submitted, "If they put the fear in the mind of companies that ED will raid and then they are forced to buy electoral bonds and then ED stops action, then this is classic case of extortion."

Case Title: Naleen Kumar Kateel v. State of Karnataka

Appearance: K G Raghavan Sr.Adv Suyog Herele adv for petitioner. Sr Adv Prashant Bhushan for R2

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