A Bengaluru court has ordered the registration of an FIR against Union Finance Minister Nirmala Sitharaman over allegations of extortion through the electoral bonds scheme, following a complaint filed by Adarsh Iyer from the Janaadhikara Sangharsha Sanghatane. The complaint accuses Sitharaman and others of misusing the scheme to facilitate extortion under the guise of political funding, triggering a major controversy surrounding the now-scrapped initiative. The Special Court for People's Representatives in Bengaluru directed the police to take action, resulting in an FIR being filed against the Union Minister and other unnamed individuals, with an investigation underway.
The electoral bonds scheme, introduced by the Indian government in 2018, was designed to replace cash donations to political parties, ostensibly to improve transparency in political contributions. The bonds allowed donors to contribute anonymously to political parties, a provision that quickly drew criticism from activists and opposition parties, who argued that the lack of transparency could facilitate corruption and undue influence over the political process. These concerns culminated in a Supreme Court ruling in February 2024, which declared the scheme unconstitutional, stating that it violated citizens' right to information by concealing the sources of political donations. The apex court's decision was seen as a significant blow to the government's claims of reforming political funding.
In the aftermath of the FIR, Karnataka Chief Minister Siddaramaiah demanded Sitharaman's resignation, arguing that her continued presence in office undermined the integrity of the government. He called on her to step down in the wake of such serious allegations, stating, "An FIR has been registered against Nirmala Sitharaman in the Special Court for People's Representatives. She is a Union Minister, and an FIR has been lodged against her too. They were involved in extortion through electoral bonds, and she must tender her resignation." He also called for an expedited investigation into the matter, urging the authorities to submit a report within three months, as required under Section 17A of the Prevention of Corruption Act.
Section 17A, a provision added to the Prevention of Corruption Act in 2018, offers additional safeguards to public servants by requiring prior approval from a competent authority before an inquiry or investigation can be initiated against them for actions taken in their official capacity. Siddaramaiah, who is also being probed under Section 17A in connection with alleged irregularities in the Mysuru Urban Development Authority (MUDA), emphasized that the investigation against Sitharaman should proceed with the same rigor, stating that no one should be above the law.
The Karnataka Chief Minister extended his criticism to other prominent political figures, including JD(S) leader and Union Minister HD Kumaraswamy, accusing him of corruption and calling for his resignation as well. "First, let Kumaraswamy resign. Shouldn't he tender his resignation too? Let them resign first. Even Prime Minister Narendra Modi should resign," Siddaramaiah said, escalating his demands for accountability at the highest levels of government. He accused the prime minister of being complicit in the electoral bond extortion case, urging him to step down and allow a thorough investigation into the matter.
Siddaramaiah’s statements reflect the growing political tension surrounding the electoral bonds scheme, which has become a lightning rod for criticism over the alleged misuse of political funding. While the government had positioned the bonds as a means to clean up electoral financing, the lack of transparency and the Supreme Court’s ruling has cast a long shadow over the initiative. The opposition has seized on the FIR against Sitharaman to highlight what they see as broader issues of corruption and lack of accountability within the ruling party.
The investigation into the allegations is expected to be closely watched, with potential implications not just for Sitharaman but for the entire political landscape, as it reignites debates over the transparency and ethics of political funding in India. With pressure mounting for Sitharaman’s resignation and calls for broader investigations into other political leaders, the case could have far-reaching consequences for the Modi government as it navigates this latest controversy.
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