3 weeks ago
Supreme Court Refuses to Release TMC's Frozen Rs 440-Crore Funds
The ED is a special police agency that investigates money crimes.
It thought some money in a political party's bank accounts might have been obtained by cheating, so it locked the accounts.
The party, called TMC, had three accounts holding about 440 crore rupees.
That is an enormous amount of money.
The party asked India's highest court, the Supreme Court, to unlock the accounts.
It argued that only about 60 crore rupees were suspected, so freezing everything was unfair.
The Supreme Court said no for now, because a lower court had already made a fair arrangement.
The party may still use money for everyday needs like salaries and rent, but a special officer watches over that spending.
Some party members are also fighting over who should control the party.
The court said that fight must be settled later, so for now the accounts stay frozen.
The Supreme Court refused to lift the freeze on three TMC-linked HDFC Bank accounts holding about Rs 440.42 crore, calling the Calcutta High Court's orders 'balanced'.
The Enforcement Directorate (ED) froze the accounts on July 7 in a money laundering probe into alleged suspicious fund transfers to Carewell Aviation India for an aircraft and helicopter purchase.
TMC's lawyers argued that alleged proceeds of crime were only about Rs 60 crore, while the freeze blocked salaries for about 250 employees and monthly expenses of roughly Rs 1 crore across 17 offices.
The ED countered that around Rs 125 crore remained available in three accounts, a claim TMC disputed, prompting the agency to offer filing an affidavit.
The bench of Justices M M Sundresh and P B Varale left factional disputes between the Banerjee-led faction and rebel leader Biswanath Das unresolved, with oversight by a court-appointed Special Officer.
- Who
- A Supreme Court bench of Justices M M Sundresh and P B Varale, the Mamata Banerjee-led Trinamool Congress (TMC), the Enforcement Directorate (ED), and rebel MLA Biswanath Das.
- What
- The Supreme Court refused to lift the ED's freeze on three TMC-linked HDFC Bank accounts holding about Rs 440.42 crore, upholding the Calcutta High Court's interim arrangement that allows day-to-day expenses under a court-appointed Special Officer.
- Where
- Supreme Court of India in New Delhi; the probe originated from a complaint with West Bengal's Bidhannagar Cyber Crime Police.
- When
- Heard on 11 August; the ED froze six accounts on July 7, following Calcutta High Court orders dated July 9 and July 20.
- Why
- The accounts were frozen in an ED money laundering investigation into alleged suspicious financial transactions, including funds sent to Carewell Aviation India for an aircraft and helicopter purchase.
Banerjee-Led TMC Faction
ED and Rebel Faction
Scope of the account freeze
Banerjee-Led TMC Faction
TMC's lawyers argued that alleged proceeds of crime are only around Rs 60 crore, so freezing more than Rs 400 crore was excessive and blocked basic obligations such as salaries and rent.
ED and Rebel Faction
The ED defended the freeze as part of a money laundering investigation into suspicious transactions, including funds sent to Carewell Aviation India tied to an aircraft and helicopter purchase.
Factional control of party accounts
Banerjee-Led TMC Faction
The Banerjee-led faction, represented by Kapil Sibal, Abhishek Manu Singhvi and Menaka Guruswamy, argued the party needs access to funds to meet basic obligations, including salaries for about 250 employees and expenses across 17 offices.
ED and Rebel Faction
Rebel leader Biswanath Das, through senior advocate K Parameshwar, said his faction represented the 'real Trinamool' while the dispute was pending before the Election Commission, arguing that the interim arrangement favoured only one faction and alleging irregularities including one account receiving Rs 360 crore soon after the party lost the election.
Whether unencumbered funds remained
Banerjee-Led TMC Faction
TMC's lawyers said the accounts were actually encumbered and could not cover salaries or rent, with Menaka Guruswamy noting that some unencumbered accounts served specific purposes like newspaper funds and member welfare.
ED and Rebel Faction
Additional Solicitor General S V Raju said around Rs 125 crore remained available and three accounts were already allowed for daily operations, offering to file an affidavit to clarify the position.
Key facts
- Frozen amount
- Rs 440.42 crore across three HDFC Bank accounts
- Investigating agency
- Enforcement Directorate (ED)
- Alleged proceeds of crime
- Rs 60 crore (per TMC's Kapil Sibal)
- Accounts frozen on
- July 7; six bank accounts frozen in total
- Alleged recipient of funds
- Carewell Aviation India (aircraft and helicopter purchase)
- Monthly staff salaries
- About Rs 53.23 lakh for roughly 250 employees
- Monthly office expenditure
- Roughly Rs 1 crore across 17 offices
- Funds claimed available
- Rs 125 crore in three accounts (per ED)
Quotes
Justice M.M. Sundresh
Judge of the Supreme Court of India
“"Upon perusing the records, including the impugned order, we are satisfied that the high court has passed a balanced order."”
republicworld.com
“"The alleged proceeds of crime are ₹60 crores. Bank has more than ₹400 crores. Why should all of it be frozen?"”
livemint.com
Sources
Supreme Court Refuses To Lift Freeze On TMC’s Rs 440-Crore Bank Accounts, Allows Day-To-Day Expenses
No relief for Mamata Banerjee: Supreme Court refuses to release ₹440 crore from TMC’s frozen bank accounts
Supreme Court declines to lift freeze on TMC bank accounts for day-to-day expenses - Telegraph India
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