Apex Court Proposes Interim Relief For Day-To-Day Expenses
The Supreme Court on Monday suggested that the Enforcement Directorate (ED) consider allowing the Trinamool Congress (TMC) limited access to funds from its frozen bank accounts to meet essential day-to-day expenses while the legal dispute remains pending before the Calcutta High Court.
A bench comprising Justices MM Sundresh and PB Varale directed the central agency to obtain instructions on the proposal and return with its response next week. The court clarified that it was not expressing any opinion on the merits of the case.
“We have suggested both sides that some amount can be released for the administrator for daily expenses and some other necessary expenses. We clarify that we have not dealt with the merit of the case since the matter is pending before the Calcutta High Court,” the bench observed while listing the matter for further hearing next week.
TMC Says Frozen Accounts Have Crippled Party Operations
The Supreme Court was hearing TMC’s appeal against a July 20 order of the Calcutta High Court, which had declined to grant interim relief against the ED’s decision to freeze three HDFC Bank accounts linked to the party during a money laundering investigation.
Representing the TMC, senior advocates Kapil Sibal and Menaka Guruswamy argued that the freezing of the accounts had severely affected the party’s functioning.
According to the party, it has been unable to pay employee salaries, legal expenses and other routine organisational costs due to the restrictions on the accounts.
Supreme Court Questions ED’s Stand
During the proceedings, the bench questioned the Enforcement Directorate over the basis for freezing the entire amount available in the accounts.
“It looks very vague. What are the proceeds of crime you are talking about?” the bench asked, while also seeking clarification on the agency’s justification for freezing all the funds.
Appearing for the ED, Additional Solicitor General SV Raju submitted that the freezing order had been issued before the appointment of the court-appointed administrator. He also argued that the TMC continued to operate several other bank accounts and was therefore not completely deprived of financial resources.
Court Suggests Limited Withdrawal Through Administrator
While refraining from making any final observations, the Supreme Court indicated that the ED could consider allowing a limited amount to be accessed through the court-appointed administrator. The funds, the court suggested, could be utilised for essential expenses, including legal costs and day-to-day administrative functioning.
The agency has been asked to respond after obtaining necessary instructions.
Money Laundering Probe Behind Account Freeze
The dispute stems from an Enforcement Directorate investigation under the Prevention of Money Laundering Act (PMLA) into the alleged diversion of party funds.
According to the ED, nearly ₹133.84 crore was transferred from one of the TMC’s bank accounts to Carewell Aviation India Pvt Ltd as part of transactions under investigation. During searches conducted in July, the agency froze six bank accounts, including three HDFC Bank accounts belonging to the party, which reportedly held around ₹440 crore.
The TMC has denied any wrongdoing, alleging that the freezing action was arbitrary and unsupported by evidence of identifiable proceeds of crime.
The party has also relied on an earlier Calcutta High Court order appointing retired Justice Subrata Talukdar as a special officer to supervise the accounts and permit withdrawals for routine expenses. However, the High Court had refused interim permission to operate the accounts, prompting the appeal before the Supreme Court.
