Manas Dasgupta
NEW DELHI, Feb 16: Within hours after the Congress announced that the income tax department has frozen the party accounts, its Appellate Tribunal granted conditional relief for the time being but only above Rs 115 Crores.
The Congress party announced on Friday that four of its bank accounts had been frozen by the income tax (I-T) department. However, the party swiftly challenged the move, and the Income Tax Appellate Tribunal (ITAT) granted relief and allowed the party to operate its bank accounts for now by de-freezing the accounts until a final hearing next week. The party’s prayer for an interim relief would be heard next Wednesday.
The Congress issued a clarification stating that the party is mandated to ensure that a sum of ₹ 115 crore has to be maintained in their bank accounts. The amount has to remain untouched in compliance with the directive from the tax authorities, implying a freeze on these funds.
“This means that ₹ 115 crore have been frozen. This ₹ 115 crore is much more than we have in our current accounts,” the Congress said. “Right now, we have no money to spend. Electricity bills, staff salaries, our Nyaya Yatra, everything is impacted. Look at the timing; this is clear,” he said. “We have only one PAN, and the four accounts are all linked.”
The Congress Treasurer Ajay Maken told the media that four banks accounts of Indian National Congress and the bank account of Indian Youth Congress had been frozen by the I-T department. Mr Maken said the action was allegedly due to a 45-day delay in filing I-T return for the year 2018-19.
“It is not a freezing of Congress’ accounts but democracy has been frozen. When the announcement for elections are just a month away, they have frozen the accounts of the principal Opposition party,” he said at a press conference in New Delhi. “Will there be a single party rule in the country?” he asked.
Mr Maken described the move as a “disturbing blow to the democratic process.” The freeze reportedly stems from a tax demand of ₹ 210 crore raised by the Income Tax department, a move that the Congress claims is politically motivated and strategically timed to disrupt the party’s election preparations. “Democracy doesn’t exist; this is like a one-party rule and the principal opposition party has been subjugated. We seek justice from the judiciary, media, and the people,” Mr Maken said.
The Congress leader said the party has taken legal action in response to the freeze, with the matter currently before the income tax appellate tribunal. Mr Maken explained that they chose not to disclose the information earlier as the hearing was pending.
The party learned about the freezing of its accounts on Thursday and the party’s lawyer and Rajya Sabha member Vivek Tankha said a total of four accounts have been affected. Banks have been instructed not to accept or honour Congress’ cheques, with the frozen funds to be submitted to the Income Tax department.
Mr Maken claimed that in the election year of 2018-19, the party submitted its accounts 45 days late, but freezing the accounts was an extreme measure. He argued that there have been cases and precedents where such actions were not taken.
“We have given the names of all MLAs and MPs who have contributed, based on the Manmohan Singh committee report,” Mr Maken stated. The Congress leader claimed that timing of the freeze, coming just ahead of the crucial general elections, raises suspicions about the motives behind the Income Tax department’s actions.
Calling the move by I-T department to freeze the party’s accounts an “assault on democracy,” the Congress president Mallikarjun Kharge, in a post on X appealed to the judiciary to save the multi-party system and “protect India’s democracy.”
“Power drunk Modi Govt has frozen the accounts of the country’s largest Opposition party – the Indian National Congress – just before the Lok Sabha elections. This is a deep assault on India’s Democracy! The unconstitutional money collected by the BJP would be utilised by them for elections, but the money collected by us through crowdfunding shall be sealed!” Mr Kharge said.
“That is why we have said there will be no elections in the future! We appeal to the judiciary to save the multi-party system in this country and secure India’s democracy. We will take to the streets and fight strongly against this injustice and dictatorship,” he added.
This development comes on the heels of the Supreme Court, in a landmark judgment, striking down the electoral bonds scheme which was introduced by the Narendra Modi government on January 2, 2018, as a solution to replace cash donations and enhance transparency in political funding.
“That is why, I have said that there won’t be any elections in the future… We will take to the streets and fight strongly against this autocracy!” the Congress chief added.