Big Blow To TMC Ahead Of July 21 Rally: Calcutta HC Refuses To Lift ED Freeze On Rs 440 Crore Party Accounts

In a legal setback for the All India Trinamool Congress (TMC) just a day before its politically crucial July 21 Martyrs' Day rally, the Calcutta High Court on Monday refused to grant interim relief against the Enforcement Directorate's (ED) decision to freeze three bank accounts of the ruling West Bengal party.

Justice Krishna Rao refused to stay the ED's order, meaning the freeze on the accounts, allegedly holding around Rs 440 crore, will remain in force while the court hears TMC's writ petition challenging the agency's action under the Prevention of Money Laundering Act (PMLA), 2002.

The interim order comes as a setback for the Mamata Banerjee-led party, which had sought permission to operate the accounts pending disposal of the case.

What's The ED Case?

The ED has frozen the three bank accounts as part of its money laundering probe into the alleged transfer of party funds to Carewell Aviation India and an associated entity between April 2023 and June 2026.

According to the central agency, the transactions were linked to the alleged purchase of an aircraft and a helicopter, prompting it to invoke provisions of the PMLA and freeze the accounts containing around Rs 440 crore.

TMC's Argument

Appearing for the TMC, senior advocate Abhishek Manu Singhvi argued that the ED's action effectively nullified an earlier order of the Calcutta High Court.

He submitted that another Bench had earlier permitted the party to operate the same bank accounts under the supervision of a Special Officer after they had been frozen on the directions of the West Bengal Police following a complaint by rebel TMC MLA Biswanath Das, who alleged misuse of party funds.

Singhvi contended that the ED was aware that the accounts were likely to be de-frozen pursuant to the earlier proceedings but imposed a fresh freeze through its money laundering investigation.

ED Defends Fresh Freeze

The Enforcement Directorate, however, maintained that its action arose from an independent money laundering investigation and had no connection with the earlier police-directed freeze.

The agency argued that the attachment was based on suspected financial transactions under the PMLA and therefore stood on a separate legal footing.

HC's Interim Order

After hearing both sides, Justice Krishna Rao refused to grant any interim permission to the TMC to operate the accounts.

With no stay on the ED's action, the freeze will continue until further orders on the writ petition. The court is expected to issue a detailed order later.

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