Bengaluru’s Tilak Nagar police on Saturday, September 28, 2024, registered an FIR against Union Finance Minister Nirmala Sitharaman, BJP national president JP Nadda, and others for allegedly misusing the electoral bond scheme to extort money from companies through enforcement agencies. The FIR was lodged following a court directive and includes charges under sections 384 (extortion), 120B (criminal conspiracy), and 34 (acts done with common intention) of the Indian Penal Code (IPC).
The complaint was filed by Adarsh R Iyer, co-president of Janaadhikaara Sangharsha Parishath (JSP), who accused the BJP leadership of orchestrating a criminal conspiracy to compel corporations to purchase electoral bonds benefiting the party. The FIR also names BJP Karnataka president BY Vijayendra, senior leader Naleen Kumar Kateel, and officials from the Enforcement Directorate (ED).
According to the complaint, Nirmala, who oversees the Ministry of Finance, conspired with the ED to conduct raids on major corporations, including aluminium and copper giants like Vedanta, Sterlite, and Aurobindo Pharma, to extort over Rs 8,000 crore through electoral bonds. Many corporates, fearing raids, were forced to buy electoral bonds worth several crores, which were then encashed by Nirmala, JP Nadda, Naleen, Vijayendra and others. "The entire extortion racket, disguised as electoral bonds, has been orchestrated in collusion with BJP officials at various levels," the complaint alleged.
Aurobindo Pharma, a Hyderabad-based company, became a focal point of the investigation after its director, P Sarath Chandra Reddy, was arrested by the ED in connection with the Delhi liquor scam in November 2022. Days later, Aurobindo Pharma purchased ₹5 crore worth of electoral bonds, which were encashed by the BJP. The company, after turning approver in June 2023, donated an additional Rs 25 crore to the BJP later that year, bringing their total contributions via electoral bonds to Rs 52 crore. The BJP received Rs 34.5 crore of these funds, while the Bharat Rashtra Samithi and Telugu Desam Party received Rs 15 crore and Rs 2.5 crore, respectively.
Karnataka Chief Minister Siddaramaiah, facing calls for resignation from opposition BJP after an FIR was filed against him in the Mysuru Urban Development Authority (MUDA) site allotment case questioned, “By the BJP’s logic, shouldn’t Nirmala Sitharaman resign as well?” In response, JD(S) leader and Union Minister HD Kumaraswamy said, “Why should Nirmala Sitharaman resign? Have electoral bonds been deposited in her personal account? Has she abused her power for personal gain like SIddaramaiah?”
Electoral bonds are similar to promissory notes and allow donors to buy these bonds from the SBI and donate anonymously to political parties. These bonds will not have the donor’s name and neither are political parties required to disclose the source of these bonds. The Electoral Bond scheme was introduced in 2017 through the Finance Act, and was struck down as unconstitutional in February 2024.