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Karnataka High Court Halts Investigation into Nirmala Sitharaman Over Electoral Bonds Scheme

Karnataka High Court Halts Investigation into Nirmala Sitharaman Over Electoral Bonds Scheme
Abhishek Sharma
Founder & Editor-in-Chief
Published: Updated: 2 min read
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The Karnataka High Court has paused the investigation into Union Finance Minister Nirmala Sitharaman and others related to the electoral bonds scheme. This decision was made by Justice M. Nagaprasanna after BJP leader Nalin Kumar Kateel filed a plea.

The judge noted that, according to Section 383, an informant must show they were threatened for extortion to be proven. While anyone can initiate criminal proceedings, in cases of extortion, only the victim can do so. The identity of the complainant is crucial. The judge stated that allowing further proceedings before addressing objections would misuse the legal process, so the court has stayed the investigation until the next hearing date.

According to police, an FIR was filed against Union Finance Minister Nirmala Sitharaman, Enforcement Directorate (ED) officials, and various BJP office-bearers under IPC sections 384 (extortion), 120B (criminal conspiracy), and 34 (common intention). This was based on a special court’s order.

BJP Karnataka chief B.Y. Vijayendra and party leader Nalin Kumar Kateel are also named in the FIR. The complaint was made by Adarsh R. Iyer, Co-President of the ‘Janaadhikaara Sangharsha Parishath’ (JSP), who alleged that the accused committed extortion disguised as electoral bonds, profiting over 8,000 crore rupees.

Iyer claimed that Sitharaman, with the secret assistance of ED officials, facilitated the extortion of thousands of crores for the benefit of others at both state and national levels. He further alleged that the extortion scheme was coordinated with BJP officials. In February, the Supreme Court ruled the electoral bond scheme unconstitutional, stating it violates the right to information and freedom of speech.

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Abhishek Sharma
Founder & Editor-in-Chief

Abhishek Sharma

I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire. I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world. I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas. As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential. I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities. Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire

Last reviewed by Abhishek Sharma on August 26, 2026

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