The Congress party faced a temporary setback when the Income Tax department froze its main bank accounts, including those of the Youth Congress. However, the party quickly responded by challenging the move, and the Income Tax Appellate Tribunal granted relief by unfreezing the accounts until a final hearing next week.
In a statement, the Congress clarified that they are required to maintain a sum of Rs 115 crore in their bank accounts, which must remain untouched in compliance with tax authorities’ directive. This implies a freeze on these funds.
“This means that Rs 115 crore has been frozen. This amount is much higher than what we have in our current accounts,” the Congress stated.
During a press conference, party treasurer Ajay Maken described the freeze as a “disturbing blow to the democratic process.” The freeze is reportedly a result of a tax demand of Rs 210 crore raised by the Income Tax department, a move that the Congress claims is politically motivated and strategically timed to disrupt their election preparations.
“We are witnessing a one-rule party where democracy doesn’t exist, and the principal opposition party is being suppressed. We seek justice from the judiciary, media, and the people,” Mr. Maken expressed.
The Congress leader explained that legal action has been taken in response to the freeze, with the matter currently pending before the income tax appellate tribunal. Mr. Maken revealed that they chose not to disclose the information earlier due to the ongoing hearing.
The party learned about the freezing of their accounts yesterday, and their lawyer, Vivek Tankha, confirmed that a total of four accounts have been affected. Banks have been instructed not to accept or honor Congress’ cheques, and the frozen funds are to be submitted to the Income Tax department.
Mr. Maken argued that although the party submitted their accounts 45 days late in the election year of 2018-19, freezing the accounts is an extreme measure. He pointed out that there have been cases and precedents where such actions were not taken.
“We have provided the names of all MLAs and MPs who have contributed, based on the Manmohan Singh committee report,” Mr. Maken stated.
The timing of the freeze, just before the crucial general elections, raised suspicions about the motives behind the Income Tax department’s actions, according to the Congress leader.
“At the moment, we have no money to spend. Electricity bills, staff salaries, our Nyay yatra, everything is impacted. Look at the timing; it’s clear,” he said. “We have only one PAN, and the four accounts are all linked.”
Party president Mallikarjun Kharge expressed his concern, stating, “The Modi government, intoxicated with power, has frozen the accounts of the country’s largest opposition party – the Indian National Congress – just before the Lok Sabha elections. This is a severe blow to democracy.”
“The unconstitutional money that BJP has collected will be used in the elections, but the money we have collected through crowdfunding will be sealed. That is why we have said that there will be no elections in the future! We appeal to the judiciary to save the multi-party system in this country and secure India’s democracy. We will take to the streets and fight strongly against this injustice and dictatorship,” he added in a post on X.
This development follows the recent landmark judgment by the Supreme Court, which struck down the electoral bonds scheme. Introduced by the government on January 2, 2018, the electoral bonds scheme aimed to replace cash donations and enhance transparency in political funding.
