Supreme Court Refuses To Interfere With Calcutta HC's Restrictions On Use Of Trinamool Bank Accounts Frozen By ED

The Supreme Court on Tuesday refused to interfere with the restrictions imposed by the Calcutta High Court in operating the bank accounts of the All India Trinamool Congress party, which are frozen by the Enforcement Directorate as part of a money laundering investigation.A bench of Justices MM Sundresh and PB Varale was dealing with TMC's plea challenging the Calcutta High Court's July 20 interim order whereby it refused to permit the party to operate 3 HDFC bank accounts, as well as the July 9 order which allowed the use of those accounts for daily expenses under the supervision of the Court-appointed Special Officer.The bench also heard a separate petition filed by Biswanath Das, a rebel TMC leader, who challenged the July 9 order, contending that he represents the real party.The Supreme Court disposed of both the petitions, observing that the High Court's order was "balanced". The Court also allowed Biswanath Das to raise his objections before the Special Officer. The Court clarified that all contentions are open to be raised in the main petition pending in the High Court.“We will not say anything. We will dispose of both the matters and leave it to the discretion of the Special Officer appointed by the High Court. Whatever you want to say, say it in the main petition,” Justice Sundresh said.Justice Sundresh said that the July 9 order of the High Court ensured that the daily operations are not stalled.Senior Advocates Kapil Sibal, Abhishek Manu Singhvi and Menaka Guruswamy appeared for TMC. Additional Solicitor General SV Raju appeared for the ED. Senior Advocate K Parameshwar appeared for Biswanath Das.The ED has frozen 3 TMC bank accounts allegedly containing around ₹440 crores. According to the agency, the action forms part of its money laundering investigation into alleged transfers of funds to Carewell Aviation India and an associated entity between April 2023 and June 2026 in connection with the purported acquisition of an aircraft and a helicopter. Last week, the Court had asked ED to explore if some amount can be released from the accounts for the party's daily expenses.Why should the entire accounts be frozen? SibalSibal submitted that the party had approximately Rs 164 crore in funds which, according to the party, were not encumbered by the Enforcement Directorate. He referred to additional affidavits concerning 36 accounts, comprising five bank accounts and 31 fixed deposits. He submitted that if the fixed deposits were encashed, the proceeds would be credited to accounts which had subsequently been frozen..“The alleged proceeds of crime is Rs 60 crores. Bank has more than Rs 400 crores. Why should all of it be frozen?” Sibal asked.He submitted that the freezing of the accounts was preventing the party from meeting its ordinary financial obligations, including payment of salaries.According to Sibal, the party employs approximately 250 employees and salaries amounting to around Rs 53.23 lakh for the current month were due. There were also contractual payments to agencies providing office personnel and security services.He said the party's expenditure for 17 offices was around Rs 1 crore per month and that invoices of vendors engaged in connection with election-related activities were also pending. Sibal further alleged that accounts of recipients and service providers had also been frozen.He referred to the High Court's July 9 order, under which a former High Court judge was appointed as Special Officer and three accounts were permitted to be operated for day-to-day expenditure until September 30. Sibal alleged that the investigating agency had frozen the accounts after the High Court indicated that it was going to pass an interim order. He also questioned the attachment of accounts belonging to a company from which the party had taken aircraft-related services.ED: Rs 125 Crore Available For Day-To-Day OperationsASG Raju submitted that the Supreme Court's earlier concern was whether the TMC would be able to meet its day-to-day expenditure. He said that three bank accounts were available for day-to-day operations under the High Court's July 9 order.Raju submitted that accounts maintained with Indian Bank were free from any ED encumbrance and that approximately Rs 125 crore was available. He further stated that two of the accounts did not have any encumbrance even from the local police. When Justice Sundresh asked how much money was available, Raju maintained that Rs 125 crore was available for the party's day-to-day operations.Sibal, however, disputed this position and submitted that Indian Bank's position showed that the accounts were encumbered. Raju offered to file an affidavit stating that the two accounts were not attached.Justice Sundresh clarified that the Court was not concerned with the dispute between rival factions of the party. “We are not concerned about the factions. We only thought of considering limited relief,” the Court said.Rival TMC Faction Opposes Operation Of...

Supreme Court Refuses To Interfere With Calcutta HC's Restrictions On Use Of Trinamool Bank Accounts Frozen By ED

Amisha Shrivastava

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Supreme Court Refuses To Interfere With Calcutta HC's Restrictions On Use Of Trinamool Bank Accounts Frozen By ED

Amisha Shrivastava

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