SC Seeks ED Reply on Releasing Funds from Frozen TMC Bank Accounts

The Supreme Court on Monday sought the Enforcement Directorate’s (ED) response on whether a portion of the funds from the frozen bank accounts of the Mamata Banerjee-led Trinamool Congress (TMC) faction could be released to a court-appointed special officer to meet the party’s daily operational expenses.

A bench comprising Justices M M Sundresh and P B Varale was hearing a plea filed by the TMC faction challenging a Calcutta High Court order that had refused interim relief to operate three party bank accounts frozen by the ED.

The ED had frozen the accounts, which collectively held around ₹440.42 crore, as part of its money laundering investigation linked to allegations of dishonest financial transactions, unlawful collection of funds and suspected routing of money through party accounts. During the hearing, senior advocate Kapil Sibal, appearing for the TMC faction, argued that the account freeze had affected the party’s functioning, including its ability to pay salaries to employees. He also challenged the High Court’s observation that the party had access to 36 other accounts containing around ₹164 crore.

Opposing the plea, Additional Solicitor General S V Raju, appearing for the ED, said the investigation was ongoing and the agency was acting to prevent further alleged money laundering. He stated that the provisions of the Prevention of Money Laundering Act (PMLA) were aimed not only at investigating offences but also preventing the movement of suspected funds.

The Supreme Court noted that the High Court had appointed a former Calcutta High Court judge as a special officer to facilitate expenses related to the functioning of the political party. The bench suggested that a limited amount could potentially be released through the special officer for day-to-day requirements. Raju informed the court that he would seek instructions on the matter.

The court has scheduled the next hearing for August 11. According to ED officials, the preliminary investigation found that nearly ₹160 crore was transferred from TMC accounts to Carewell Aviation India Pvt Ltd and related entities between April 2023 and June 2026. Officials further alleged that a portion of the funds was used for purchasing an Embraer Legacy 600 business jet and an AgustaWestland 109SP helicopter, claims that are part of the ongoing probe.