New Delhi/IBNS: The Congress has demanded Union Finance Minister Nirmala Sitharaman's resignation "on moral grounds" after the Bharatiya Janata Party leader has been named in a First Information Report following allegations of extortion involving the now-defunct electoral bonds.

The complaint, filed by Adarsh Iyer from Janaadhikara Sangharsha Sanghatane, accused Sitharaman and others of using the electoral bonds for extortion, reports say.

As a result, the Special Court for People's Representatives in Bengaluru has ordered the FIR, which has been registered against Sitharaman and other accused parties.

Speaking to ANI, Congress leader Jairam Ramesh said, "... The ED, IT and CBI have been misused, threats were made to secure funds... The FIR has not been registered by the Congress but a special court on the basis of a complaint filed by an individual. This is the main issue in Karnataka. The Union Finance Minister should resign on moral grounds."

The electoral bonds scheme, introduced by the Centre in 2018 to replace cash donations to political parties and aimed at enhancing transparency in political funding, was declared "unconstitutional" by the Supreme Court in February, which stated it violated citizens' right to information.

Reacting to the FIR, Karnataka Chief Minister Siddaramaiah called for Sitharaman's resignation and demanded a report on the investigation be submitted within three months.

"An FIR has been registered against Nirmala Sitharaman in the Special Court for People's Representatives. Who is she? She is a Union Minister, and there is an FIR against her too. They were involved in extortion through electoral bonds, and the FIR has been registered on that. She should tender her resignation after the FIR has been registered. Will they (BJP) ask her to resign?" he was quoted as saying by India Today.

He further added, "Now, as per Section 17A (of the Prevention of Corruption Act), the investigation must be completed and a report should be submitted within three months. Based on that, they have registered the FIR and are investigating further."

Section 17A of the Prevention of Corruption Act requires prior approval from a competent authority before investigating any allegations against public servants, providing additional protection against frivolous charges.

Siddaramaiah himself will also be investigated under Section 17A in connection with alleged irregularities in the MUDA case.