Supreme Court Upholds Calcutta High Court’s Decision
The Supreme Court of India has upheld the Calcutta High Court’s decision, denying interim relief to the Trinamool Congress (TMC) in their plea against the freezing of their bank accounts by the Enforcement Directorate (ED). The bench, comprising Justices MM Sundresh and PB Varale, stated that the High Court had made a balanced decision, considering that the party had enough funds to manage its daily operations.
The Supreme Court refrained from delving into the merits of the case, noting that related matters, including a petition concerning the West Bengal Police’s freeze order on TMC’s accounts, are still pending before the High Court. “We are not inclined to interfere in both the matters. Disposed of,” the Bench remarked.
Arguments and Court Proceedings
During earlier proceedings, the Court had requested the ED’s input on whether a limited amount could be released from the frozen accounts for a court-appointed administrator to handle the party’s daily expenses. Senior Advocate Kapil Sibal, representing TMC, argued that while the alleged proceeds of crime amounted to ₹160 crore, the accounts held more than ₹400 crore.
“Everything is frozen. I can’t pay salaries. I can’t pay my employees. Why are you freezing more than the proceeds of crime? They are also freezing recipient account. This is not fair,” Sibal contended. In response, Additional Solicitor General SV Raju assured the court that the party was protected regarding operational expenses, highlighting that around ₹120 crore were accessible.
Contentions Regarding Account Usage
Senior Advocate Menaka Guruswamy, also representing TMC, pointed out that specific accounts were designated for particular uses. “There is a newspaper account which has around a crore. I can’t use that to pay salaries. Account 2 is membership dues. It’s a welfare account. The three accounts that the interim account allowed us to operate were actually for day to day use. How can we pay salaries from these newspaper funds, welfare funds etc,” she explained.
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On behalf of the rebel TMC MLA whose complaint led to the freezing of the accounts, Senior Advocate K Parameshwar argued that only one faction should not be allowed to manage the accounts. “We file a complaint alleging large scale financial mishandling. The section which claims itself to be TMC hasn’t filed a single affidavit saying how much money they have etc. The arrangement worked out by the HC severely prejudices me,” he stated.
Background of the Case
Previously, the Calcutta High Court denied TMC any interim relief in a case under the Prevention of Money Laundering Act (PMLA) concerning the alleged transfer of funds to Carewell Aviation India and related entities for an aircraft purchase. The High Court noted that the ED had not ordered a debit freeze on 36 other party accounts holding ₹164 crores, and decided to await the ED’s response to TMC’s plea, setting a hearing for August 26.
An earlier High Court Bench had granted TMC interim relief after three of its accounts were frozen based on a complaint from rebel MLA Biswanath Das. A special officer, retired High Court Justice Subrata Talukdar, was appointed to oversee the operation of these accounts until September 30.
