Calcutta HC Allows TMC Partial Account Access, but ED Freeze Blocks Relief

The Calcutta High Court on Thursday permitted the Trinamool Congress (TMC) led by Mamata Banerjee to partially operate three of its primary bank accounts held with HDFC Bank. The accounts, reportedly containing about Rs 440 crore, were frozen last month by Bidhannagar Police following a complaint from a rebel faction of the party.

Justice Saugata Bhattacharyya appointed retired High Court judge Justice Subrata Talukdar as a special officer to supervise all financial withdrawals from these accounts until September 30. The court directed that two authorised signatories from the Mamata Banerjee faction may present cheques for essential daily and legal expenses to Justice Talukdar. After verification and countersignature, the bank would process the payments.

However, the court’s order does not provide immediate relief to the TMC because the Enforcement Directorate (ED) late Wednesday night froze the same three accounts under the Prevention of Money Laundering Act (PMLA). The ED said its preliminary investigation indicated that the TMC invested its own funds into a private aviation firm to acquire a business jet and a helicopter. Consequently, the TMC cannot operate the accounts until it obtains relief from the ED order.

During the hearing, the TMC’s senior advocate Abhishek Manu Singhvi argued that the freeze had paralysed the party’s basic operations, including payment of salaries to 215 desk employees (Rs 51 lakh), security personnel dues (Rs 5 lakh), vendor expenses, and legal costs totalling over Rs 1.07 crore. He submitted that eight accounts had been frozen in total, including by the ED, and questioned how a political party could function while the Election Commission of India (ECI) was yet to decide on the leadership dispute.

Representing the state, Solicitor General Tushar Mehta opposed the petition, arguing that the police were safeguarding public money. Despite his objections, the court allowed legal and operational expenses to be cleared through the accounts under supervision.

The High Court also directed HDFC Bank to maintain detailed records of all transactions and cooperate with investigating agencies. It clarified that this interim arrangement would not affect the pending leadership recognition proceedings before the ECI.

Further, the court ordered Bidhannagar Police to submit a comprehensive investigation report before the next hearing on September 21.