FIR against FM Sitharaman over electoral bond complaint alleging 'criminal conspiracy and extortion'

Police have invoked Sections 384 (punishment for extortion) and 120B (criminal conspiracy) read with 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code (IPC), senior officers confirmed.

Bengaluru: Bengaluru police registered a First Information Report (FIR) on Saturday against Union Finance Minister Nirmala Sitharaman and other BJP leaders for the alleged irregularities concerning the electoral bonds. The complainant has alleged that suspects had benefited over Rs 8,000 crore.

A top police source confirmed to DH that the FIR was filed around 2 pm at the Tilak Nagar police station in the southeastern division of the Bengaluru police. "The police initiated the action after they received the court order," the source said.

A special court for cases involving elected representatives on Friday had directed the jurisdictional police to initiate an investigation. The Electoral Bonds Scheme was introduced on January 2, 2018, allowing people to donate to political parties anonymously.

In February this year, the Supreme Court struck down the scheme and declared it "unconstitutional".

Police have invoked Sections 384 (extortion) and 120B (criminal conspiracy) read with 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code (IPC) against Sitharaman (A1), the Enforcement Directorate (ED) officials (A2), office bearers of the BJP and others at the national level (A3), BJP Karnataka president B Y Vijayendra (A5), senior leader Naleen Kumar Kateel (A4), who was earlier the state BJP chief and MP from Dakshina Kannada, and BJP office bearers at the state level and others (A6).

The FIR followed a private complaint by Adarsh R Iyer, co-president of Janaadhikaara Sangharsha Parishath (JSP) alleging criminal conspiracy and extortion compelling entities and individuals by electoral bonds in favour of Bharatiya Janata Party (BJP).

While Iyer’s complaint before the court had BJP National President J P Nadda as A3, the FIR itself doesn't mention his name.

Iyer alleged that Sitharaman and ED officials holding constitutional posts “committed extortion under the guise and garb of electoral bonds and benefitted to the tune of Rs 8,000 crore and more.” He alleged that the “extortion” was committed in connivance with Nadda, Kateel, Vijayendra and other office bearers of the party at the state and national level.

"Sitharaman through the clandestine aid and support of ED facilitated to extort thousands of crores of INR for the benefit office bearers of the BJP and others at the national level and in the state of Karnataka," he alleged.

He also claimed that Sitharaman used the ED to “conduct raids, seizures and arrests of various corporates, their CEOs, MDs, etc”.

“Fearing the raids, many corporates and moneybags were coerced and coaxed into buying electoral bonds worth several crores, which are encashed by Nadda, Kateel, Vijayendra and others. The entire extortion racket under the garb of electoral bonds have been orchestrated hand in glove with officials of BJP at various levels,” Iyer alleged.

In one instance, the complainant stated that Sterlite and Vedanta Company, led by Anil Agarwal, were subjected to raids by the ED on multiple occasions.

Pursuant to this, Anil was made to buy electoral bonds worth Rs 230.15 crores during April 2019, August 2022 and November 2023. The complainant has produced documents with an analysis of electoral bonds purchased in favour of the BJP and the details of ED raids.

Another firm, Aurobindo Pharma, which, too, was subjected to raids, seizures and arrests by the ED officials. The complaint further said that pursuant to the raids, the Aurobindo Pharma group of companies purchased electoral bonds on January 5, 2023, July 2, 2022, November 15, 2022, and November 8, 2023, to the tune of Rs 49.5 crore, Iyer stated.

Iyer had first approached the Tilak Nagar police station with a complaint on March 30, 2024, and then approached DCP Bengaluru South East on April 2, 2024. He moved the court with a private complaint when there was no action.