Kolkata: The pro-Mamata Banerjee unit of Trinamool Congress (TMC) could not get interim relief from the Calcutta High Court on Monday. The court currently refused to allow operation of the party’s three bank accounts frozen by the Enforcement Directorate (ED). About Rs 440 crore is said to be deposited in these accounts. After this decision of the court, the ban on these accounts will continue till the investigation is completed. This case is related to alleged money laundering and use of party funds, which is being investigated by ED.
What is the matter?
The ED alleges that party funds from these three bank accounts of TMC were used in transactions like purchasing aircraft and helicopters, which is being investigated under the Prevention of Money Laundering Act (PMLA). During this investigation, the agency imposed a debit freeze on the accounts, due to which the party cannot withdraw money from them. Later, Mamata Banerjee faction approached the High Court challenging this action and sought permission to operate the accounts.
What did the High Court say?
A single bench of Justice Krishna Rao refused to immediately stay the ED action during the hearing. The court clarified that at present the accounts cannot be allowed to be operated and the debit freeze imposed by the ED will continue. There will be a detailed hearing of the case in the court further, but at present the Mamata Banerjee faction has not received any interim relief.
What relief was given earlier?
Earlier in July, another bench of Calcutta High Court had allowed limited expenditure from these accounts. The court had allowed the accounts to be used for day-to-day administrative and legal expenses and had appointed a retired judge as a special officer who would monitor every payment. However, later ED again froze these accounts under PMLA, after which a new legal dispute started.
Why is this decision important for TMC?
It is being said that huge financial funds of the party are deposited in these accounts. In such a situation, freezing of accounts may affect the financial operations and various activities of the organisation. TMC says the party’s routine administrative work is being affected, while the ED claims it would not be appropriate to allow the accounts to operate until the investigation is completed. The latest order of the court is currently being considered in favour of the stand of the investigating agency.
What will happen next now?
The hearing of the case will continue in the Calcutta High Court. The court will further consider the arguments of both ED and TMC. If the court does not give any new interim order in future, all three bank accounts will remain frozen. On the other hand, ED will continue its money laundering investigation and further action will be decided based on the findings of the investigation. Political eyes are also fixed on this matter because it can have an impact on the politics of West Bengal and the organisational structure of TMC.
