Karnataka Court Halts Inquiry into Nirmala Sitharaman Over Poll Bonds

The Karnataka High Court has issued a stay on the investigation against Finance Minister Nirmala Sitharaman and others related to allegations of misconduct involving the now-defunct electoral bond scheme. The interim order was granted by Justice M Nagaprasanna following a petition filed by BJP leader Nalin Kumar Kateel, who was named as an accused in the case. The court is scheduled to hear the matter again on October 22.

The investigation stemmed from a First Information Report (FIR) that was filed based on a special court’s directive. The FIR includes serious allegations, invoking sections related to extortion, criminal conspiracy, and actions undertaken by multiple individuals in furtherance of a common intention. This legal move comes amid ongoing debates surrounding the electoral bond scheme, which was criticized for its potential to undermine transparency in political financing.

The electoral bond scheme, implemented in 2018, allowed individuals and corporations to donate money to political parties anonymously. Critics argue that this system has facilitated corruption and increased opacity in political funding. The scheme was declared unconstitutional by the Supreme Court earlier this year, prompting scrutiny over the financial practices it enabled.