Soon after the Congress alleged that the main bank accounts of the party were frozen over an income tax demand of `210 crore, the I-T appellate tribunal allowed it to operate them pending a further hearing next week. The grand old party alleged that the move by the authorities just before the Lok Sabha polls was intended to impact all the party’s ongoing political activities.

Congress treasurer Ajay Maken, who alleged at a Press conference that Income Tax authorities had frozen its accounts, informed that the tribunal has put a lien of `115 crore on its accounts, and the party has been allowed to spend over and above that, which, however, came as a huge relief for the party.

Party leader Vivek Tankha, who appeared before the tribunal against the order, said he told the tribunal that the Congress would not be able to participate in the “festival of elections” if its accounts remain frozen. The tribunal will hear the matter next Wednesday before a final decision is taken.

Several party leaders, including party president Mallikarjun Kharge and former party chief Rahul Gandhi, expressed their outrage and alleged that the Government’s move was an attack on democracy. Maken, who said democracy was in danger in the country, detailed the tribunal’s order.

The Indian Youth Congress staged a protest against the Centre over the freezing of bank accounts of the Indian National Congress and its youth wing, alleging that the move was “political vendetta.”

Scores of Youth Congress leaders and workers gathered on Central Delhi’s Rajendra Prasad road with banners and raised slogans against the BJP-led Centre.

Security was beefed up around the area, and barricades were deployed.

Srinivas BV, national president of the Indian Youth Congress, alleged that the party’s accounts were sealed “just before the elections on purpose” in “an attempt to bring a one-party system.”

“On our petition, the Income Tax Department and the Income Tax Appellate Tribunal (ITAT) have said we have to ensure that Rs 115 crore have to be kept in the banks. This 115 crore is the lien marked in the bank accounts. We can spend an amount over and above that,” Maken said.

“This means that Rs 115 crore has been frozen. This Rs 115 crore is much more than we have in our Current Accounts,” he explained. Congress treasurer had earlier said the freezing of its accounts on “flimsy grounds” had affected all political activity of the party barely two weeks before general elections are announced.

The accounts, including that of the Indian Youth Congress, were frozen on an Income Tax demand of Rs 210 crore for 2018-19, an election year, Maken said.

According to him, the party filed its Income Tax returns for the concerned year a few days late, and that is why this action was taken. The matter, he said, also pertains to a discrepancy in cash receipts of Rs 14.4 lakh given to the party by its MLAs and MPs as donations made from their salaries. He said the IT authorities’ orders freezing the accounts had come on Wednesday.

While Maken said four main bank accounts were frozen, sources later put the number at nine. The party was unable to use even the funds received under its crowdfunding scheme, Maken said at the Press conference.

“Don’t be afraid of Modi, the Congress is not the name of power of money, but of the power of people... We have never bowed before dictatorship, nor will we ever bow down,” said Rahul.

Terming the Government “power-drunk” for freezing the accounts of India’s largest opposition party just before the Lok Sabha elections, Kharge said it is a “deep assault” on democracy. The unconstitutional money collected by the BJP would be utilised by them for elections, but the money collected by the Congress through crowdfunding shall be sealed, the party president said.

Pointing out that the Government’s dictatorial attitude came barely a month before the 2024 elections, Venugopal made a reference to the Supreme Court scrapping the electoral bond scheme for political funding on Thursday.

“When one avenue to tilt the balance was struck down by the courts yesterday, the Government has chosen a new route now. The BJP has hoarded over Rs 6,500 crore through the illegal electoral bond scandal, which remains untouched - but the earnest donations of ordinary INC workers and supporters are frozen,” the Congress said.

On Thursday, the Supreme Court said the Centre’s electoral bonds scheme was “unconstitutional” and ordered the disclosure of the bond’s donors, amount, and recipients by March 13.