Court Orders FIR Against Finance Minister Sitharaman Over Electoral Bonds
Petitioner Alleges the Minister and BJP Officials Intimidated Corporates
Newsreel Asia Insight #321
September 28, 2024
Nirmala Sitharaman, Minister of State for Commerce and Industry of India (at the time), speaking during the Session: India’s Turn to Transform at the Annual Meeting 2017 of the World Economic Forum in Davos, January 18, 2017 I Image courtesy of the World Economic Forum, used under CC license
A special court in Bengaluru has directed the police to register a First Information Report (FIR) against Union Finance Minister Nirmala Sitharaman and several leaders of the Bharatiya Janata Party (BJP) on allegations of extortion connected to the controversial Electoral Bonds Scheme.
The complaint, by activist Adarsh R. Iyer, claims misuse of official powers to coerce donations through the scheme, significantly benefiting the BJP, both financially and politically.
On Sept. 27, the XLII Additional Chief Judicial Magistrate in Bengaluru sent the complaint the city police, following Iyer’s allegations that Sitharaman, alongside top BJP officials, engaged the Enforcement Directorate (ED) to intimidate corporates into purchasing electoral bonds, according to Bar and Bench, which reported that the magistrate’s order states the petitioner should “wait for FIR” and “Call on 10.10.2024.”
Adarsh Iyer, representing the non-governmental organisation Janaadhikaara Sangharsha Parishath, alleged in his complaint that under Sitharaman’s direction, various companies were targeted and raided by the ED, prompting fearful corporates to buy electoral bonds, a financial instrument that was ruled unconstitutional before the general elections 2024 by the Supreme Court due to its lack of transparency and potential for misuse.
The complaint specifically names BJP President J.P. Nadda and Karnataka BJP President Naleen Kumar Kateel, alleging they directly benefited from the extorted funds. Former BJP Karnataka Vice President B.Y. Vijayendra is also implicated in the complaint.
The alleged extortion involves more than 80 billion rupees. Prominent companies mentioned in the extortion claims include Vedanta, Sterlite and Aurobindo Pharma.
Iyer stated that his decision to approach the court followed alleged inaction by the Deputy Commissioner of Police (DCP) Bengaluru South East, whom he had allegedly approached on Feb. 4.
Several companies, previously subjected to raids by central agencies, had purchased large amounts of electoral bonds just weeks before the 2024 Lok Sabha elections, according to media reports.
According to those previous media reports, Future Gaming and Hotel Services Pvt Ltd emerged as the largest contributor, purchasing bonds valued at 13.68 billion rupees, while Megha Engineering and Infrastructure Ltd also acquired bonds worth 9.6 billion rupees. Both companies had previously encountered government agencies.
The dominance of the BJP in receiving electoral bond donations, particularly in the context of the elections, pointed to a significant advantage that could skew the democratic playing field at the time. The substantial financial backing from anonymous sources raised questions about the influence of money on political power as well as the accountability and transparency of the electoral process.
On the order of the Supreme Court to enhance transparency ahead of national elections, the Election Commission of India had disclosed these transactions, sparking widespread criticism and demands for accountability from opposition parties.