Supreme Court leaves TMC frozen bank accounts to High Court-appointed officer

The Supreme Court on Tuesday declined to intervene in a plea by the Trinamool Congress (TMC) against a Calcutta High Court order that restricted the party from operating bank accounts frozen by the Directorate of Enforcement (ED) in a money laundering investigation. The apex court observed that the High Court had already taken a “balanced view” by allowing limited access to funds through a Special Officer.

A Bench led by Justice M.M. Sundresh took on record the submission of Additional Solicitor General S.V. Raju, appearing for the ED, that the TMC already had limited access to operational funds. Mr. Raju drew the Bench’s attention to a July 9 order of the Calcutta High Court, which had directed the appointment of Justice Subrata Talukdar, a former judge of that court, as ‘Special Officer’ till September 30, 2026, to facilitate the operation of the three bank accounts for meeting day-to-day and monthly expenditure of the political party.

The subsequent July 20 order of the High Court had also referred to the July 9 order. “They (the TMC) are already protected… The High Court itself had allowed it in an interim order. There is a fight between the two factions on which is going to operate it,” Mr. Raju said. The Supreme Court said it was not concerned with the factional dispute.

During an August 3 hearing, the court had asked the ED to consider allowing the TMC to access a portion of its funds to cover daily operational expenses. On Tuesday, the apex court remarked that the High Court had taken a “balanced view” of the case. It asked Biswanath Das, a rebel TMC leader who had challenged the July 9 order, to approach the Special Officer.

“We will dispose of both the matters and leave it to the discretion of the Special Officer appointed by the High Court. Whatever you want to say, say it in the main petition,” Justice Sundresh said.

The ED had frozen the three TMC bank accounts allegedly containing about ₹440 crore. On July 8, the ED froze the accounts as part of a money laundering investigation into alleged transfers of funds to Carewell Aviation India and an associated entity between April 2023 and June 2026, purportedly in connection with the acquisition of an aircraft and a helicopter.

The Supreme Court’s decision effectively allows the Special Officer to decide on the operational use of the funds, while the underlying legal questions remain pending before the High Court. The TMC has maintained that the freeze hampers its legitimate political activities, while the ED has argued that the accounts are linked to proceeds of crime.

The case highlights the legal complexities when investigative agencies freeze accounts of political parties, and the courts’ effort to balance investigation needs with the basic functioning of democratic institutions. The Special Officer, a former judge, will now oversee withdrawals and ensure transparency in how the funds are used, subject to the High Court’s final orders.