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Relief for Congress as frozen bank accounts by I-T dept now operational

Congress chief Mallikarjun Kharge said that the move to freeze the accounts just before the Lok Sabha elections is a deep assault on Indian democracy

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Photo: PTI

Nandini Singh New Delhi
The Congress on Friday announced that the Income Tax (I-T) department had frozen the party's bank accounts, including those of the Youth Congress, weeks ahead of the announcement of dates for the general elections. However, just an hour after Congress's announcement, the accounts were unfrozen. 

Earlier in the day, party treasurer Ajay Maken called the move a "disturbing blow to the democratic process". The freeze reportedly stems from a tax demand of Rs 210 crore raised by the Income Tax department, which the Congress alleges is politically motivated and strategically timed to disrupt the party's poll preparations.

"Democracy doesn't exist; this is like a one-rule party, and the principal opposition party has been subjugated. We seek justice from the judiciary, media, and the people," Maken said.

 
 

The Congress leader stated that the party has taken legal action in response to the freeze, which is currently before the income tax appellate tribunal. Maken also said that they chose not to disclose the information earlier as the hearing is pending.

The party learned about the freezing of its accounts yesterday, and the party's lawyer, Vivek Tankha, said that a total of four accounts have been affected. Banks have been instructed not to accept or honour Congress' cheques, with the frozen funds to be submitted to the Income Tax department.

Maken claimed that in the election year of 2018-19, the party submitted its accounts 45 days late, but freezing the accounts is an extreme measure. He also argued that there have been cases and precedents where such actions were not taken.

"We have given the names of all MLAs and MPs who have contributed, based on the Manmohan Singh committee report," Maken stated.

'Deep blow to democracy'


Slamming the Centre, Maken claimed that the timing of the freeze, coming just ahead of the crucial general elections, raises suspicions about the motives behind the Income Tax department's actions.

"Right now, we have no money to spend. Electricity bills, staff salaries, our Nyay yatra, everything is impacted. Look at the timing; this is clear," he said. "We have only one PAN, and the four accounts are all linked," he added.

Congress president Mallikarjun Kharge also voiced his apprehension, stating, "Intoxicated with power, the Modi government has frozen the accounts of the country's largest opposition party - the Indian National Congress - just before the Lok Sabha elections. This is a deep 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 wrote on X.

 

Reacting to the development, Congress leader Rahul Gandhi accused the Narendra Modi government of being behind the I-T department's action.

"Don't be afraid Modi ji, Congress is not about the power of money but of people. We have never bowed down before dictatorship, nor will we ever bow down. Every Congress worker will fight tooth and nail to protect India's democracy," he wrote on X. 

 

Congress leader Shashi Tharoor also termed the move by the I-T department as "shocking" and "utterly shameful".

The freezing of the bank accounts also comes just hours after the Supreme Court, in a landmark judgment, struck down the electoral bonds scheme. The electoral bonds scheme, introduced by the government on January 2, 2018, was seen as a solution to replace cash donations and enhance transparency in political funding.

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First Published: Feb 16 2024 | 12:52 PM IST

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