Electoral bonds case: Criminal case not to continue against Karnataka BJP leader, says SC

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New Delhi, Feb 3 (PTI) No criminal proceedings against Naleen Kumar Kateel, former Karnataka state BJP president, would continue in connection with allegations of extortion linked to the electoral bond scheme, the Supreme Court on Monday said.

A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar refused to entertain an appeal of one Adarsh R Iyer from "Janaadhikaaara Sangharsha Parishath" against the December 3, 2024 verdict of the Karnataka High Court.

The high court quashed the criminal proceedings against Kateel and others in connection with allegations of extortion linked to the scheme.

“There are no specific allegations and there are no materials also...we will not allow any roving inquiry,” said the bench.

Iyer, represented by advocate Prasant Bhushan, said money was extracted under the scheme by using the probe agencies like Enforcement Directorate.

Referring to the case laws, Bhushan assailed the high court verdict and said a criminal case couldn't be scuttled like this.

The bench said it cannot allow a roving inquiry in the absence of concrete material.

"We are not inclined to interfere with the high court order," it added.

The bench, however, said the dismissal of the present plea did not mean any other case or FIR could not be filed in future if supported by concrete material.

The high court's judgement ruled the complaint lacked legal standing and failed to establish even a prima facie case of extortion. It observed the complainant was not an aggrieved party and lacked the locus standi to file the complaint for extortion.

"If a victim had come forward with a complaint stating that he was forced to purchase electoral bonds, the situation would be different. However, in this case, the complainant is an outsider to the alleged transaction," it noted.

The high court pointed out the trial court failed to apply judicial discretion while referring the case for investigation under Section 156(3) of CrPC.

"A magistrate cannot act as a mere rubber stamp to a complaint alleging extortion without verifying its merit," it added.

It also held that essential ingredients of the offence of extortion were not satisfied.

The case stemmed from a private complaint filed by Iyer, who alleged Kateel, along with several other BJP leaders and officials, was part of an extortion racket that coerced corporate entities into purchasing electoral bonds under threat of government raids.

The officials of the Enforcement Directorate were also made accused in the complaint.

The Karnataka High Court quashed the proceedings, preventing further legal action against Kateel. PTI SJK AMK