The Calcutta High Court on Monday, 20 July refused to grant an interim stay on the Enforcement Directorate (ED)'s freeze on three bank accounts of the All India Trinamool Congress (TMC), which together hold deposits of ₹440 crore. A single-judge bench of Justice Krishna Rao declined to interfere with the ED-imposed debit restrictions, which will now remain in force until further orders.

What the Court Decided

After a detailed hearing on Monday morning, Justice Rao's bench observed that the court would not, at this stage, interfere with the ED's decision to impose debit restrictions on the three accounts. The ruling means the accounts remain effectively frozen, blocking any withdrawals until the matter is resolved through further judicial proceedings.

The petition before Justice Rao had been filed by the faction of the party led by former West Bengal Chief Minister Mamata Banerjee, seeking a stay on the ED-imposed freeze. The refusal marks a setback for the ruling party in the state, which had earlier secured partial relief from a different bench.

How the Freeze Was Imposed

The debit restrictions on the three accounts were first put in place by bank authorities acting on instructions from the state police. Earlier this month, a separate single-judge bench — that of Justice Sougata Bhattacharya — had allowed a 'partial and temporary withdrawal' of those police-directed restrictions.

However, the ED subsequently stepped in independently, directing the same bank to impose debit restrictions over allegedly suspicious transactions amounting to ₹164 crore. Last week, the ED also sent a letter to the concerned private-sector commercial bank seeking details of those 'doubtful' transactions. It was this ED-imposed freeze — separate from the earlier police instructions — that the Mamata Banerjee-led faction sought to challenge before Justice Rao's bench.

The Origins: Internal Party Dispute

The sequence of freezes traces back to a bitter internal conflict within the TMC. The party's former treasurer and former West Bengal Sports and Power Minister Aroop Biswas first wrote to bank authorities requesting a freeze on the three accounts, citing apprehensions that the funds could be misused.

Subsequently, MLAs belonging to a rebel faction of the Trinamool Congress Legislature Party — led by expelled MLA Ritabrata Banerjee — approached the police with a similar request, alleging that the accounts could contain proceeds of corruption and extortion. The state police acted on these complaints and directed the bank to impose debit restrictions, after which the ED also intervened.

Wider Impact on TMC Finances

The three accounts at the centre of Monday's ruling are not the only ones affected. Debit restrictions have also been imposed on 12 other TMC bank accounts with combined deposits of over ₹550 crore, again following instructions from the state police. In total, the party faces restrictions on accounts holding over ₹990 crore, a significant constraint on its financial operations ahead of future electoral cycles.

With the court declining to intervene at this stage, the matter is expected to return for further hearings, and the TMC's legal options remain open. The outcome of the ED's investigation into the alleged suspicious transactions will likely determine the next phase of proceedings.