Calcutta High Court Declines to Stay Enforcement Directorate Probe into Trinamool Congress Funds
The Calcutta High Court has refused to stay an Enforcement Directorate investigation into alleged money laundering involving Rs 133.84 crore linked to the Trinamool Congress. The agency has frozen six bank accounts, while the party maintains the probe is politically motivated.
The Calcutta High Court has declined to grant an interim stay on an ongoing Enforcement Directorate (ED) investigation into the financial dealings of the Trinamool Congress (TMC). The probe, which centers on the alleged diversion of Rs 133.84 crore, follows an Enforcement Case Information Report (ECIR) registered by the agency on June 23, based on an initial FIR filed by the Bidhannagar Cyber Crime Police.
During the proceedings, the ED informed the court that its investigation into the party's bank accounts, including those held with HDFC and ICICI, revealed substantial fund transfers to entities such as M/s Carewell Aviation India Private Limited. The agency alleges that these transactions were structured to siphon off funds for personal use, unrelated to the party's mandated activities. Consequently, the ED has frozen six of the 36 bank accounts identified as being held in the name of the Trinamool Congress, which collectively contain approximately Rs 164 crore according to NDTV.
Representing the Trinamool Congress, senior advocate Abhishek Manu Singhvi challenged the agency's actions, characterizing the investigation as politically motivated. He argued that the ED failed to identify specific proceeds of crime and contended that the freezing of the accounts was executed in a mechanical and arbitrary manner, disregarding constitutional and statutory safeguards. The defense maintained that the agency had not established a clear link between the alleged illegal activities and the funds currently held in the frozen accounts.
In its observation, the court noted that it could not determine the legality of the disputed transfers at this interim stage. The judiciary emphasized that the Trinamool Congress retains the right to contest the ED's allegations as the investigation proceeds. This development marks a significant point of friction between federal investigative agencies and regional political entities in West Bengal, raising broader questions regarding the oversight of political party finances and the application of the Prevention of Money Laundering Act (PMLA) in the context of organizational funding. The outcome of this legal challenge is expected to have lasting implications for how political parties manage their financial disclosures and the extent of federal scrutiny over such assets.