Supreme Court declines relief to TMC in bank account freeze case

The Supreme Court on Tuesday upheld Calcutta High Court's refusal to grant any interim relief to Banerjee-led Trinamool Congress (TMC) faction in its plea challenging the freeze of its bank accounts by the Enforcement Directorate (ED).

A Bench of Justices MM Sundresh and PB Varale said the High Court passed a balanced order after taking note of the fact that party has sufficient funds available to run day-to-day affairs of the party.

The Court said since the matter including a petition related to the freeze ordered on TMC's accounts by West Bengal Police is pending before High Court, any discussion on merits would not be appropriate.

"We are not inclined to interfere in both the matters. Disposed of," the Bench said.

On the last hearing, the Court had sought ED’s response on whether a limited amount from the frozen bank accounts could be released to a court-appointed administrator to meet the party's day-to-day expenses.

Today, Senior Advocate Kapil Sibal representing the TMC said while the alleged proceeds of crime are ₹160 crore, banks accounts have more than ₹400 crore in them.

"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," he said.

However, Additional Solicitor General SV Raju said the party is protected as far as operation of the accounts for day-to-day expenses is concerned. He said almost ₹120 crore are available and also pointed to the ongoing dispute within the party.

Senior Advocate Menaka Guruswamy, also representing TMC, said accounts available to the party are meant for certain specific purposes.

"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," Guruswamy said.

Senior Advocate K Parameshwar, representing a rebel TMC MLA on whose complaint the party bank accounts were frozen by West Bengal police, said only one faction cannot be allowed to operate the accounts.

"We come to know that this is what’s happening. 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. After the elections, there were elections to apex body of TMC. Today who is the TMC is in doubt. We are saying we are TMC. If we are TMC then only one faction cannot be allowed to operate bank accounts through the interim arrangement," he said.

However, the Court declined to go into issue of factionalism .

"We are confining ourself to day to day operations. Three accounts are available. The interim order takes care. Only issue is is there something more to be done or interim order takes care of all the cases. We will say that we will dispose of. Leave it to the discretion of the special officer [appointed by high court]. We will not say anything on the interim arrangement," it said.

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

The ED case relates to the 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.

The High Court on July 20 declined to grant the party any interim relief. It noted that the ED had not ordered a debit freeze on 36 other accounts of the party, which have an amount of ₹164 crores in them.

Therefore, it declined to grant the TMC any interim relief, sought the ED's response to the party's plea and listed the matter for hearing on August 26.

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

It appointed a special officer to facilitate the operation of the three TMC bank accounts that were frozen at the direction of the police. By a July 9 order, retired High Court Justice Subrata Talukdar was appointed the special officer till September 30.

The TMC later claimed that the ED moved to freeze the party's accounts after it apprehended that the party would get interim relief from the High Court in the police case.

Senior Advocate Abhishek Manu Singhvi also represented TMC.

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