Supreme Court Suggests Partial Release of TMC's Frozen Funds for Daily Needs
The Supreme Court on Monday urged the Enforcement Directorate (ED) to consider allowing the Trinamool Congress (TMC) access to a portion of funds lying in three bank accounts that were frozen as part of a money-laundering investigation. The Bench, comprising Justices M.M. Sundresh and P.B. Varale, observed that the party would require money for its day-to-day expenses. However, it made clear that it would not examine the merits of the dispute over the legality of the freezing order, which remains pending before the Calcutta High Court.
The court was hearing an appeal by the TMC against a July 20 order of the Calcutta High Court that refused interim relief against the ED's decision to freeze the accounts. The Bench declined to stay the High Court's order but asked the central agency to obtain instructions on whether a portion of the funds could be released, with a direction to revert after a week.
“We are not passing any order because it has to be decided by the High Court... We have suggested to both sides that some amount can be released for the administration, for daily expenses and some other necessary expenses,” the Bench said, listing the matter for further hearing on Tuesday.
Senior advocates Kapil Sibal and Menaka Guruswamy, appearing for the TMC, told the court that the restrictions on the three accounts had “completely stifled” the party financially, affecting its ability to pay employee salaries, legal costs and other routine expenses. “I can’t pay my employees... See what the consequences are. You say on what basis you are freezing the entire amount lying in the accounts,” Mr. Sibal submitted.
The Bench also questioned the basis for the ED's action and sought to know what portion of the funds in the accounts could be linked to the alleged proceeds of crime. “It looks very vague. What are the proceeds of crime you are talking about?” it asked, while also questioning the logic of freezing the entire amount.
Additional Solicitor General S.V. Raju, appearing for the ED, submitted that the freezing order had been issued before an administrator was appointed. He further contended that the TMC operated several other bank accounts and was therefore not entirely without access to funds. “Investigation is going on. We have frozen the accounts, but every day money is going out,” Mr. Raju submitted. Mr. Sibal opposed this, questioning how funds could be withdrawn from frozen accounts. “How can my learned friend make that statement? It is frozen,” he said.
The Bench then urged the law officer to obtain instructions on whether a portion of the funds could be released to meet the party's immediate expenses, reiterating that it was not examining the merits of the dispute at this stage. “We are not going into the merits of the case. Release some amount to the administrator pending the final order to be passed,” the Bench remarked.
On July 8, the ED froze the three 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. A day later, on July 9, the High Court appointed retired judge Justice Subrata Talukdar as a special officer until September 30 and permitted the TMC limited access to the frozen accounts under his supervision. Under that arrangement, any two authorised signatories were allowed to present cheques to the special officer when funds were required for day-to-day expenses. On July 20, however, the High Court declined further interim relief, holding that the legality of the alleged fund transfers could not be examined at that stage.
