FIR Filed against Nirmala Sitharaman over Electoral Bonds Scheme, Know What Is the Whole Controversy?

A special court in Bengaluru has ordered the registration of a FIR against Union Finance Minister Nirmala Sitharaman on charges of extortion. This development follows a complaint lodged by an NGO, Janadhikaara Sangharsha Parishath, which alleges that extortion was carried out using the electoral bonds scheme, a controversial system already deemed unconstitutional by the Supreme Court of India.

SC Ruling Declared Electoral Bonds Unconstitutional

Earlier this year, the Supreme Court declared the electoral bonds scheme unconstitutional, stating that it violated Article 19(1)(a) of the Indian Constitution, which guarantees the right to information (RTI) and freedom of expression. The court's judgment was a significant blow to the scheme, which had been introduced by the government with the stated goal of increasing transparency in political funding.

As part of its ruling, the Supreme Court directed the State Bank of India (SBI) to halt the issuance of electoral bonds. This came after various concerns were raised regarding the lack of transparency surrounding the identities of donors and the political parties they were supporting. The court’s decision has since escalated tensions between the ruling government and the opposition.

BJP Received Maximum Donations

Reports suggest that the Bharatiya Janata Party (BJP) received the lion's share of donations under the electoral bonds scheme, amounting to a staggering ₹6,986.5 crore.  The allegations of corruption and misuse of the electoral bonds scheme ignited a debate about the nature of political funding. 

Karnataka CM Calls for Resignation

In response to the FIR and the mounting controversy, Karnataka Chief Minister Siddaramaiah has called for Nirmala Sitharaman's resignation. He stressed that the filing of an FIR against a Union Minister is a serious matter, and it demands accountability. Siddaramaiah further urged that the investigation into the case should be completed within three months to ensure transparency and fairness. He argued that Sitharaman should take moral responsibility and step down from her position until the matter is resolved.

FIR Filed Under Prevention of Corruption Act

The FIR against Nirmala Sitharaman has been registered under Section 17A of the Prevention of Corruption Act. This section stipulates that permission must be obtained from the competent authority before investigating any public servant. Given the high-profile nature of the case, the court has directed the concerned authorities to file a report on the investigation within three months. This marks a crucial phase in the ongoing scrutiny of the electoral bonds scheme and its implementation.

Introduced in 2018, the electoral bonds scheme was initially presented as a measure to bring transparency to political funding. The scheme allowed individuals and corporations to purchase bonds from the State Bank of India, which could then be donated to political parties. The identity of the donors was not disclosed publicly, leading to criticism from various quarters, including opposition parties and transparency advocates.