ED Freezes ₹440 Crore Linked to AITC in Major Money Laundering Investigation
The Enforcement Directorate (ED) has frozen deposits worth ₹440.42 crore held in three bank accounts of the All India Trinamool Congress (AITC) under the Prevention of Money Laundering Act (PMLA). The action follows search operations conducted at five locations in and around Kolkata as part of an investigation into alleged dishonest financial dealings, unlawful collection of money, and suspected routing of funds through entities linked to the aviation sector.
According to the ED, its investigation revealed that approximately ₹160 crore was transferred from AITC bank accounts to Carewell Aviation India Pvt. Ltd. and a related company between April 2023 and June 2026. Investigators allege that the funds were subsequently routed through interconnected entities and utilised to acquire an Embraer Legacy 600 business jet and an Agusta 109 SP helicopter, which were later leased for use by the political party.
The freezing orders were issued under Section 17(1A) of the PMLA, which empowers the ED to freeze bank deposits or other assets when their seizure is impracticable and there is a risk that the property may be transferred or dealt with during the course of an investigation. The agency maintains that the action is necessary to preserve the alleged proceeds of crime pending further inquiry.
The Trinamool Congress has strongly denied the allegations, describing the ED’s action as politically motivated. Party leaders have asserted that all funds were lawfully received, properly accounted for, and fully disclosed before the Election Commission of India and the Income Tax Department. They contend that the central agency is being used to target opposition parties ahead of key political contests.
The freezing of the accounts has triggered parallel legal proceedings before the Calcutta High Court. While the High Court has granted the party limited access to its accounts for routine administrative expenses in relation to restrictions imposed by the Kolkata Police, the ED’s independent freezing order under the PMLA remains under challenge. The Court is expected to examine whether the agency’s action satisfies the statutory requirements of the anti-money laundering law.
The case has assumed considerable legal and political significance, as it is among the first instances in which the ED has frozen bank accounts belonging to a recognised political party during an ongoing money laundering investigation. The outcome of the litigation is likely to shape the scope of investigative powers under the PMLA as well as the legal protections available to political parties in matters involving financial scrutiny.
