HC Order on TMC Bank Accounts Unlikely to Alter ED Freeze, Experts Say

The Calcutta High Court's recent order concerning bank accounts of the Trinamool Congress (TMC) is not expected to impact the Enforcement Directorate's (ED) freeze on those accounts, legal experts said on Tuesday. The court had directed the bank to allow operation of certain accounts, but the ED's attachment under the Prevention of Money Laundering Act (PMLA) remains in force unless specifically vacated.

Sources indicate that the High Court's interim order was procedural and did not address the merits of the ED's action. The ED had frozen the accounts as part of an investigation into alleged financial irregularities involving party funds. The TMC had challenged the freeze, arguing that it hampered legitimate political activities ahead of upcoming elections.

However, legal experts note that the ED's freeze is a separate statutory action under PMLA, and unless the court quashes the ED's order, the freeze remains effective. 'The High Court's order is limited to allowing the bank to consider TMC's request for access, but the ED's attachment order is not automatically stayed,' a senior lawyer commented. Another expert added that the court's directive does not nullify the ED's powers under the PMLA.

The TMC, which governs West Bengal, has been under scrutiny by central agencies in several cases. The party claims the actions are politically motivated, while the ED maintains that its investigations are based on evidence of money laundering. The frozen accounts are believed to hold funds collected through party donations and contributions.

The matter is likely to be heard further. Both the TMC and the ED are expected to file responses. The case highlights the ongoing legal tussle between political parties and investigative agencies, with implications for campaign finance and the use of anti-money laundering laws.

Observers note that the High Court's order, while providing some relief to the TMC, does not resolve the core issue. The final outcome will depend on the court's assessment of the ED's justification for the freeze. Until then, the accounts are likely to remain inaccessible for the party's use.