Calcutta High Court Reserves Order on TMC’s Plea Against ED Freeze of ₹440 Crore Bank Accounts
The Calcutta High Court on Monday reserved its order on a petition filed by the All India Trinamool Congress (TMC) seeking interim relief against the Enforcement Directorate’s (ED) decision to freeze three of the party’s bank accounts containing deposits of nearly ₹440 crore. Justice Krishna Rao concluded hearing arguments from both sides and stated that orders on the interim application would be pronounced at a later date.
The controversy stems from the ED’s action under the Prevention of Money Laundering Act (PMLA), whereby the agency froze the three HDFC Bank accounts as part of an ongoing money laundering investigation. The move came shortly after another bench of the Calcutta High Court had granted the TMC limited operational access to the same accounts in connection with a separate case arising from the West Bengal Police’s earlier freeze on the accounts.
Appearing for the TMC, Senior Advocate Abhishek Manu Singhvi argued that the ED deliberately issued the freezing order when it was aware that the High Court was about to grant relief against the police-imposed restrictions. According to the party, the timing of the ED’s action effectively nullified the judicial relief already granted and prevented the party from accessing funds required for its routine functioning. The TMC further maintained that the deposits in the accounts had been fully disclosed to statutory authorities, including the Election Commission of India and the Income Tax Department, and denied any wrongdoing.
The Enforcement Directorate defended its action, submitting that the freezing order was passed strictly in accordance with powers available under Section 17(1A) of the PMLA after material gathered during searches conducted in connection with an alleged money laundering investigation. The agency contended that the investigation is independent of the proceedings initiated by the West Bengal Police and that the freezing of the accounts was necessary to preserve assets believed to be linked to the alleged proceeds of crime.
Earlier, in proceedings relating to the police action, the Calcutta High Court had allowed the Mamata Banerjee-led TMC to operate the accounts only for day-to-day administrative and legal expenses under the supervision of retired High Court judge Justice Subrata Talukdar, who was appointed as Special Officer to scrutinize withdrawals and ensure judicial oversight. However, the subsequent ED freeze has raised fresh legal questions regarding the interplay between the Court’s interim arrangement and the central agency’s powers under the PMLA.
The High Court’s forthcoming decision is expected to determine whether interim protection can be extended against the ED’s attachment-freeze while the money laundering investigation continues. The ruling is likely to have significant implications for the scope of judicial review over investigative measures under the PMLA, particularly where parallel proceedings involving different investigating agencies affect the same assets.
