Daily Financial

Bengaluru Court Orders FIR Against Union FM Nirmala Sitharaman Over ‘Extortion’ Allegations

Daily Finanacial Published: 28 September 2024 | Updated: 28 September 2024 2 min read

Court Order: The Special Court for People’s Representatives in Bengaluru has ordered the registration of an FIR against Union Finance Minister Nirmala Sitharaman.
Allegations: The complaint alleges that Sitharaman orchestrated a scheme of extortion using electoral bonds, in collaboration with the Enforcement Directorate (ED) and other individuals holding constitutional posts.
Electoral Bonds: Electoral bonds, introduced in 2017, allow donors to buy bonds from the State Bank of India (SBI) and donate anonymously to political parties.
Supreme Court Ruling: The Supreme Court struck down the electoral bonds scheme as unconstitutional in February 2024, citing it infringed on citizens’ right to information about political funding.
Complaint Details: The complaint was filed by Adarsh Iyer, Co-President of Janaadhikaara Sangharsha Parishath, a non-government organization.
Involved Parties: Besides Sitharaman, the complaint names BJP chief JP Nadda, Karnataka BJP chief Vijayendra, and former BJP MP Naleen Kumar Kateel.
Extortion Claims: The complaint alleges that the Finance Minister conspired with the ED to conduct raids on companies like Vedanta, Sterlite, and Aurobindo Pharma to extort money through electoral bonds.
Political Reactions: Karnataka Chief Minister Siddaramaiah has called for Sitharaman’s resignation after the court order.
Legal Uncertainties: It remains unclear if the police can conduct an investigation against the Finance Minister without approval from the President.
Public Impact: The case has sparked significant public and political debate, highlighting concerns over transparency and accountability in political funding.