ED challenges admissibility of TMC petition in Calcutta HC over ₹440 crore account freeze
Synopsis
Key Takeaways
The Enforcement Directorate (ED) on Monday, 13 July challenged the admissibility of a petition filed by the Mamata Banerjee-led All India Trinamool Congress (TMC) faction before a single-judge bench of the Calcutta High Court, seeking relief from the agency's decision to freeze three bank accounts holding a combined balance of ₹440 crore. The challenge puts the case's procedural future in question even before a substantive hearing can begin.
Background: How the Freeze Came About
Debit restrictions on the three accounts were initially imposed by the respective bank authorities following directions from the West Bengal Police. The ED subsequently issued its own freeze order as part of a parallel investigation into the accounts under the Prevention of Money Laundering Act (PMLA).
Last week, a single-judge bench of Justice Sougata Bhattacharya of the Calcutta High Court granted conditional access to the TMC faction led by Banerjee. However, that order did not resolve the matter entirely, as the ED's independent freeze — imposed earlier this month — remained in force.
TMC Approaches a Second Bench
To seek relief from the ED's separate freeze order, the Mamata Banerjee-led faction approached another single-judge bench, that of Justice Krishna Rao, challenging the ED's move. This second petition set the stage for Monday's hearing, where the ED moved to block proceedings at the threshold.
What ED Argued in Court
Arguing on behalf of the ED, senior advocate S.V. Raju questioned the source of authorisation granted to the petitioner to file the petition before Justice Rao's bench. Raju insisted that written approval to file the petition be obtained before any detailed hearing could proceed. He also sought the presentation of the party's constitution as part of the proceedings.
Justice Rao directed the petitioner's counsel — former Advocate General of West Bengal, Kishor Dutta — to address the admissibility point raised by the ED. The party constitution was scheduled to be placed before the bench later on the same day, with the matter listed for further hearing shortly thereafter.
Why This Case Matters
The dispute over ₹440 crore in frozen accounts sits at the intersection of a federal agency investigation and a state political organisation's access to its own funds. The ED's challenge to admissibility is a procedural move that, if upheld, could delay substantive relief for the TMC faction significantly. Notably, the case also tests the limits of court access for political parties facing regulatory action — a question with implications beyond West Bengal alone.
The matter is expected to develop further as Justice Rao's bench takes up the party constitution and rules on the admissibility question, with the next hearing outcome likely to determine whether the case proceeds on merits.