Supreme Court Refuses To Lift Freeze On TMC’s Rs 440-Crore Bank Accounts, Allows Day-To-Day Expenses

New Delhi: The Supreme Court refused to overturn the Calcutta High Court's judgment restricting the functioning of three bank accounts belonging to the Mamata Banerjee-led faction of the Trinamool Congress (TMC) that had been blocked by the Enforcement Directorate (ED) as part of a money laundering investigation.   

A bench of Justices M M Sundresh and P B Varale stated that the High Court issued a "balanced" ruling and that there was no cause to interfere with the existing interim arrangements.

The issue covers three HDFC Bank accounts linked to the TMC, which the ED claims have a combined balance of almost Rs 440.42 crore. The accounts were frozen as part of the agency's investigation into alleged unusual financial transactions and the movement of suspected funds. 

Why did the Supreme Court refuse to intervene?

The Supreme Court stated that the major petitions are still ongoing before the Calcutta High Court, and that commenting on the merits of the case at this stage could jeopardize those processes.

Justice Sundresh also stated that the High Court's July 9 judgment did not prevent the party from carrying out its regular activities.

"Upon perusing the records, including the impugned order, we are satisfied that the high court has passed a balanced order. The main writ petitions are pending consideration before the High Court. Any discussions on merit will have a bearing on the pending writ petitions. As we are satisfied that the interim orders passed take care of the parties, we are not inclined to interfere in both the matters," the bench said.

The Banerjee-led faction had petitioned the Supreme Court against the Calcutta High Court's July 20 judgment, which limited the operation of the three HDFC Bank accounts. At the same time, the High Court authorised the party to withdraw funds needed for day-to-day operations and appointed a special officer to oversee how the funds were spent.

What is behind the Rs 440-crore freeze?

The ED has frozen three TMC-linked accounts with total balances of Rs 440.42 crore in connection with a money laundering investigation based on a FIR filed by the West Bengal police.

The case involves charges of dishonest financial operations, criminal money collection, and the transit of suspected proceeds thru TMC-related accounts.

According to the ED, around Rs 440 crore was held in three HDFC Bank accounts. The agency has also claimed that funds were sent to Carewell Aviation India and a firm affiliated with it between April 2023 and June 2026.

The transactions, according to the allegations, were connected to the purchase of an aircraft and a helicopter. The ED had frozen six bank accounts in total on July 7, including the three accounts linked to the TMC.

How did the ED probe begin?

The probe stemmed from a complaint submitted by West Bengal MLA Biswanath Das with the Bidhannagar Cyber Crime Police on June 18, 2026. Das claimed that criminal gains and funds derived from questionable financial operations had been deposited into three HDFC Bank accounts.

An FIR was subsequently filed. The ED then filed an Enforcement Case Information Report (ECIR) on June 23 and began its investigation. On July 7, the agency froze the accounts after conducting additional searches and investigations.

The TMC has appealed the action, describing the suspension of its accounts as arbitrary and stating there were inadequate reasons for such a move. The Calcutta High Court, however, declined to restore full operation of the accounts at this stage, while assuring that the party could continue meeting its routine costs under supervision.

With the Supreme Court rejecting to intervene, the interim arrangement will continue while the main petitions are pending in the Calcutta High Court.