Calcutta HC Relief May Not Impact ED Freeze on TMC Accounts in ₹440-Crore Money Laundering Probe
The Enforcement Directorate’s (ED) freeze on three bank accounts of the Trinamool Congress (TMC), containing deposits of around ₹440 crore, is likely to remain unaffected despite a recent Calcutta High Court order granting the party limited access to its accounts. Legal experts indicate that the High Court’s directions relate to restrictions imposed by the Kolkata Police, while the ED’s freeze has been issued independently under the Prevention of Money Laundering Act (PMLA).
The Calcutta High Court recently permitted the TMC to operate the accounts for routine party expenses under the supervision of a retired High Court judge appointed as a special officer. Every withdrawal is subject to judicial oversight, ensuring that essential expenditures can continue without compromising the ongoing legal proceedings.
However, the ED has separately frozen the same HDFC Bank accounts after alleging that nearly ₹160 crore was transferred from TMC accounts to Kolkata-based Carewell Aviation India Pvt. Ltd. and related entities between 2023 and 2026. Investigators claim the funds were used in transactions involving the purchase and leasing of an Embraer business jet and an Agusta helicopter, forming part of an alleged money laundering scheme under investigation.
Since the ED’s action has been taken under Section 17(1A) of the PMLA, it constitutes a separate statutory proceeding from the police investigation that was examined by the High Court. Unless the ED’s freezing order is independently challenged and modified by a competent court or tribunal, the central agency’s restrictions are expected to continue irrespective of the relief granted against the police-imposed freeze.
The Trinamool Congress has denied all allegations, maintaining that every financial transaction was lawfully disclosed to the Election Commission of India and the Income Tax Department. The party has described the ED’s action as politically motivated and has approached the Calcutta High Court seeking relief against the central agency’s freezing order as well.
The case has assumed significant legal and political importance, as it marks one of the rare instances where the ED has frozen bank accounts belonging to a recognised political party during the course of a money laundering investigation. The litigation is expected to test the interplay between constitutional protections available to political parties and the enforcement powers conferred upon investigating agencies under the PMLA.
