Can some amount be released from TMC's frozen accounts for daily expenses: SC asks ED
The Supreme Court on Monday asked the Enforcement Directorate (ED) whether some amount can be released from the frozen bank accounts of the Mamata Banerjee-led faction of the TMC in favour of a court-appointed special officer to meet the day-to-day expenses of the party.
Additional Solicitor General S V Raju, who was appearing for the ED, told a bench of Justices M M Sundresh and P B Varale that he would seek instructions on this.
The ED froze the three bank accounts, with balances totalling Rs 440.42 crore, in connection with its money laundering probe arising out of an FIR lodged by the West Bengal Police over alleged dishonest financial transactions, unlawful collection of money and routing of suspected funds through certain party accounts.
The apex court bench was hearing a plea filed by the Mamata Banerjee-led faction of the All India Trinamool Congress challenging a July 20 order of the Calcutta High Court.
The high court had refused interim relief to the Banerjee-led faction to operate three party bank accounts frozen by the ED.
During the hearing in the top court on Monday, senior advocate Kapil Sibal, appearing for the petitioner, said the party can't even pay salary to its employees due to the frozen accounts.
In its order, the high court had noted that other than the three accounts under "debit-freeze" by the ED, there were 36 other accounts in the party's name and an amount of Rs 164 crore was lying there.
Referring to the high court's order, Sibal said, "What does the impugned order say - it says there are 36 separate accounts which are not seized. That is factually incorrect".
Raju opposed the submissions and said the investigation was underway and there was money laundering from those accounts.
The anti-money laundering Act "is not only for actual money laundering but for prevention of money laundering. We are preventing it," the law officer said.
When Raju said there was "continuous offence", Sibal countered the submissions and said how can the law officer make such an argument when the bank accounts were frozen.
The bench was told that the high court had appointed a former judge of the Calcutta High Court as a special officer to facilitate the operation of the three bank accounts for incurring day-to-day expenditure to run the political party.
The top court suggested whether some amount could be released in favour of the special officer to meet the day-to-day expenses of the party.
After Raju said he would seek instructions on this, the bench posted the matter for hearing on August 11.
The Banerjee-led faction of the TMC had moved the high court challenging the initiation of ECIR (Enforcement Case Information Report), an equivalent of an FIR, proceedings by the ED.
According to the officials, the ED's preliminary investigation found that around Rs 160 crore was transferred from the TMC's bank accounts to Carewell Aviation India Pvt Ltd and its related entity between April 2023 and June 2026.
The company is alleged to have further routed Rs 82.96 crore (between 2023 and 2026) to another newly incorporated entity.
It was claimed that a "significant" amount was transferred to this entity. Out of this, Rs 112 crore was used for purchasing an Embraer Legacy 600 business jet and an AgustaWestland 109SP helicopter, the officials had said.
