sc-refuses-to-stay-hc-order-upholding-tmc-accounts-freeze

The Supreme Court on Monday declined to grant any interim stay on the Calcutta High Court order upholding the freezing of bank accounts linked to the Kalighat faction of the Trinamool Congress (TMC).

 

The case was heard by a bench comprising Justice M.M. Sundresh and Justice P.B. Varale, which stated that the matter would be taken up for detailed hearing next Tuesday.

 

The Enforcement Directorate (ED) had frozen three bank accounts of the Kalighat TMC, led by former Chief Minister Mamata Banerjee, over allegations of illegal financial transactions by the rival camp led by rebel MLA Ritabrata Banerjee. The accounts, holding approximately Rs 440 crore, were frozen under provisions of the Prevention of Money Laundering Act following search operations linked to suspected fund misappropriation.

 

Earlier, Kalighat TMC had challenged the ED’s action before the Calcutta High Court. However, Justice Krishna Rao declined to interfere, directing both parties to file affidavits outlining their positions within five weeks. The next hearing in the High Court is scheduled for August 26.

 

During Monday’s proceedings in the apex court, Additional Solicitor General S.V. Raju, appearing for the ED, argued that continuous financial transactions through the accounts necessitated their freezing. “Financial transactions are constantly taking place through these accounts; that is why they have been frozen,” he submitted.

 

Senior advocate Kapil Sibal, representing Kalighat Trinamool, questioned the basis of the ED’s action. He argued that the agency had failed to cite any specific instance of an illegal transaction that warranted such a step. Highlighting operational challenges, Sibal told the court that the freeze had impacted the party’s ability to meet routine expenses, including staff salaries.

 

Taking note of the situation, the Supreme Court suggested that a specified amount of funds could be made accessible to the court-appointed administrator currently overseeing the party’s accounts, in order to manage day-to-day operations. The court granted time to the ED to respond to this proposal.

 

With no interim relief granted, the freeze on the accounts remains in effect for now. The matter is set for further hearing next week, even as parallel proceedings continue before the Calcutta High Court.