ED froze bank accounts when they knew court would de-freeze accounts in WB Police case: TMC to Calcutta HC

The Calcutta High Court Monday reserved its order on All India Trinamool Congress (TMC)'s plea seeking directions to allow it operate the three bank accounts ordered to be frozen by the Enforcement Directorate (ED).

TMC moved the Court against ED's decision to freeze ₹440 crore in its accounts in a case under Prevention of Money Laundering Act (PMLA).

Senior Counsel Abhishek Manu Singhvi, appearing for TMC, told Justice Krishna Rao that ED froze the party's accounts when it knew that a co-ordinate bench of the High Court was about to de-freeze the accounts in a separate case registered by the West Bengal Police.

"This a completely colourable exercise. When agencies, government and independent investigations become blurred, this happens," Singhvi contended.

The ED case relates to alleged transfer of funds to Carewell Aviation India and its related entity between April 2023 to June 2026 in connection with alleged purchase of an aircraft and a helicopter.

Earlier, the High Court had granted relief to TMC after the bank accounts were frozen on the directions of the West Bengal Police over rebel TMC MLA Biswanath Das's complaint alleging fund misuse.

However, the party could not use any funds since ED also ordered a freeze on the part's bank accounts, leading to the present challenge.

At the outset of the hearing today, Additional Solicitor General (ASG) SV Raju submitted that a civil court has restrained Mamata Banerjee-led faction of TMC from taking any action on behalf of the party.

"Therefore on this ground alone the petition goes," Raju said.

However, Senior Advocate Abhishek Manu Singhvi argued government agencies were too eager to recognize the rebel faction of the TMC. Singhvi added that civil court order was passed ex-parte.

"Never before has a recognized political party's accounts, nine of them, been frozen in this manner. They froze this while opposing faction of the TMC is yet to be recognized either as TMC or symbol-holding party," Singhvi said.

Singhvi submitted that when a political party's account is frozen, it impinges on the democracy itself.

Singhvi further said that the concept of democracy was being re-defined in West Bengal, as the entire rebel group of TMC MLAs recognised by the speaker in the assembly, was supporting the government.

"Please look at the larger picture. Please don’t allow this decimation and distortion of democracy in this manner. You may have won, I may have lost; The [vote] difference was 5 percent that doesn’t mean my right to exist is obliterated," the senior counsel said.

He further said that the complainant rebel MLAs themselves had used money from these accounts while fighting elections on TMC tickets

On merits, Singhvi said political parties always use charter flights. He referred to agreements for charter used by TMC, adding that amounts were transferred by banking channels including cheque.

"Perhaps, the party which runs the ED uses hundred times charter flights compared to what much poorer country cousins can use," he submitted.

Senior Advocate Kishore Datta, also appearing for the TMC, said the ED had initiated money laundering proceedings without a definite predicate offence. He explained that the predicate offence was non-specific as it only alleges that there may have been "some mis-dealings".

"The ED is today playing the role of police," Datta submitted.

ASG Raju opposed grant of interim order. He said that the petitioner can avail alternate remedies before the adjudicating authority and appellate tribunal. He added the TMC cannot cite the co-ordinate bench's order as precedent against the ED action.

Another counsel appearing for the ED said all accounts of the TMC had not been frozen and that they have more than ₹164 crore in one of the accounts. However, Datta questioned the submission.

"How do you know that these are not frozen. Let him make a statement. Don't come with half-baked information," Datta said.