The Supreme Court on Monday urged the Enforcement Directorate (ED) to consider releasing a portion of the funds frozen in three bank accounts belonging to the Trinamool Congress (TMC), observing that the Mamata Banerjee-led party would require money for its day-to-day functioning and legal expenses while the dispute remains pending. A bench of Justices MM Sundresh and PB Varale asked the central agency to seek instructions and respond after a week, while making it clear that it was not expressing any opinion on the merits of the case, which is currently being heard by the Calcutta High Court.
"We have suggested both sides that some amount can be released for the administrator for daily expenses and some other necessary expenses. We clarify that we have not dealt with the merit of the case since the matter is pending before the Calcutta High Court," the bench observed.
The observation came while hearing the TMC's appeal against the Calcutta High Court's July 20 order refusing interim relief against the ED's decision to freeze three HDFC Bank accounts linked to the party as part of a money laundering investigation.
Representing the TMC, senior advocates Kapil Sibal and Menaka Guruswamy argued that the freezing order had effectively paralysed the party's finances, leaving it unable to pay salaries, legal fees or meet day-to-day organisational expenses.
The bench also questioned the ED's justification for freezing the accounts. "It looks very vague. What are the proceeds of crime you are talking about?" the judges asked, while seeking an explanation for freezing the entire amount held in the accounts.
Appearing for the ED, Additional Solicitor General SV Raju submitted that the freezing order had been issued before the appointment of the court-appointed administrator. He also contended that the TMC operated several other bank accounts and was not entirely without access to funds.
The court, however, indicated that the agency could consider permitting limited withdrawals through the administrator to cover essential expenditure, including legal costs.
The case stems from an ED probe under the Prevention of Money Laundering Act (PMLA) into alleged diversion of party funds. According to the agency, nearly ₹133.84 crore was transferred from one of the TMC's bank accounts to Carewell Aviation India Pvt Ltd through reported suspicious transactions. During searches conducted in July, the ED froze six bank accounts, including three belonging to the TMC, which together reportedly held around ₹440 crore.
The TMC has challenged the action, calling the freezing order arbitrary and arguing that the ED has failed to identify any proceeds of crime. It has also relied on an earlier Calcutta High Court order appointing retired Justice Subrata Talukdar as special officer to oversee the accounts and permit withdrawals for routine expenses and legal payments.
However, the High Court declined to grant interim relief on July 20, holding that the legality of the alleged fund transfers could not be examined at the interim stage. It observed that the party could raise its objections before the PMLA adjudicating authority and during the ongoing writ proceedings after the completion of pleadings.
