
The Income Tax department has taken action against the Thrissur district committee of the Communist Party of India (Marxist) [CPI(M)] for not including one of its bank accounts in the annual returns filed by the party. The department froze the account, which was held in a nationalized bank in the district, after noticing a recent withdrawal of ₹1 crore. The total amount in the account at the time of seizure was about ₹4.8 crore.
The I-T department has demanded an explanation from the party regarding the omission of this particular account from their annual returns. They are also investigating the transactions made through the account and require the party to provide details on the source of the funds.
M.M. Varghese, the Thrissur district secretary of the CPI(M), was questioned by I-T officials at the Kochi office of the Enforcement Directorate (ED) on April 5. He denied the charges brought against him and appeared at the ED office as part of the investigation into the multi-crore Karuvannur Service Cooperative Bank loan scam.
This action from the I-T department is part of their efforts to monitor and prevent the use of black money or unaccounted funds in connection with the 2024 Lok Sabha elections.
Recently, the Congress party in India has accused the government of freezing its bank accounts, claiming it is a move to stifle democracy and hinder their campaigning efforts for the national elections. The ruling party, BJP, has disputed these claims, stating that only a few accounts have been attached due to non-payment of tax dues. The freezing of the Congress party’s accounts has raised concerns about fairness and the impact on the democratic process in India. The situation is ongoing, and more information may emerge as the investigation progresses.