Calcutta High Court
The Calcutta High Court has refused to grant unconditional interim relief to the Trinamool Congress over the freezing of its bank accounts amid an ongoing investigation by the Bidhannagar Cyber Crime Police and the Enforcement Directorate (ED).
The legal dispute stems from an FIR registered by the Bidhannagar Cyber Crime Police following a complaint alleging financial irregularities and unlawful routing of funds through TMC-linked bank accounts.
Several accounts containing substantial party funds, including operational accounts and fixed deposits, were subsequently subjected to a debit freeze.
The TMC argued that the freezing of the accounts had affected its day-to-day functioning, including administrative expenditure, payment of employee salaries and meeting legal expenses.
Investigating agencies, however, have raised questions over several multi-crore transactions allegedly made to private entities and aviation firms.
Court rejects unconditional unfreezing
Rather than ordering the accounts to be completely unfrozen, the Calcutta High Court has put in place a controlled mechanism for the use of the funds.
Under the arrangement, a retired High Court judge has been appointed as a Special Officer to oversee expenditure from the affected accounts.
Authorised TMC signatories can submit cheques or requisitions to the Special Officer for payments considered necessary for the party’s routine and essential administrative functioning.
The arrangement allows the party to meet legitimate expenses while ensuring that the use of the funds remains under judicial supervision during the pendency of the proceedings.
TMC has access to 36 other accounts
The High Court also noted that the party continues to have access to 36 other bank accounts containing more than Rs 160 crore.
The observation assumes significance as the TMC had argued that the freezing of its accounts had severely disrupted its financial and administrative operations.
The court’s interim arrangement therefore seeks to balance the party’s need to continue its regular functioning with the concerns raised by investigating agencies regarding the funds under investigation.
Supreme Court declines to intervene
The matter subsequently reached the Supreme Court after the TMC faction challenged the High Court’s refusal to grant complete interim relief.
The Supreme Court declined to interfere with the High Court’s order and endorsed what it described as a “balanced order”, noting that the arrangement protected the interests of the parties while ensuring that the TMC’s political and administrative activities were not completely stalled.
The apex court directed the parties and their legal representatives to place their specific objections before the court-appointed Special Officer or the concerned High Court bench.
The main writ petitions challenging the freezing of the accounts remain pending before the Calcutta High Court.
