The Trinamool Congress (TMC) on Wednesday, 8 July firmly rejected allegations made by the Enforcement Directorate (ED) of dubious transactions through three of its bank accounts, on which debit restrictions have already been imposed, describing the central agency's action as politically motivated. The accounts in question collectively hold deposits of ₹440 crore.

TMC's Defence: Full Disclosure, Transparent Funds

In a statement issued on Wednesday evening, the party asserted that all funds held in its accounts had been fully and transparently disclosed. 'All funds held in the party's bank accounts have been fully and transparently disclosed. The party has duly reported all donation transactions to the Election Commission of India (ECI) and the Income Tax Department. These disclosures are published annually on the ECI's website and are available in the public domain,' the Trinamool Congress statement said.

The party also noted that details relating to electoral bonds were already available with the Government of India, since the bonds were issued by the State Bank of India (SBI) and subsequently submitted before the Supreme Court.

TMC Calls Action 'Arbitrary and Illegal'

Referring to the freezing of the three accounts, the Trinamool Congress termed the move arbitrary and illegal. 'The misuse of investigative agencies to target political opponents has become a hallmark of the BJP's politics and represents a serious assault on democratic institutions and the principles of a level playing field,' the party said.

This comes amid a broader pattern of opposition parties alleging that central investigative agencies are being weaponised against political rivals — a charge the ruling Bharatiya Janata Party (BJP) has consistently denied.

How the Accounts Were Frozen: A Factional Dispute

The debit restrictions originated not from the ED, but from within the party itself. Aroop Biswas, the party's former treasurer and former West Bengal Sports and Power Minister, wrote to the bank seeking a freeze on the accounts, citing apprehensions that the funds could be misused.

Subsequently, MLAs belonging to the 'rebel but majority' faction of the Trinamool Congress Legislature Party, led by expelled MLA Ritabrata Banerjee, approached the West Bengal Police with a similar request, alleging the accounts could contain proceeds of corruption and extortion. Acting on these complaints, the police directed the bank to impose debit restrictions.

Court Declines Relief; ED Steps In

The 'original but minority' faction of the party, led by Mamata Banerjee and Abhishek Banerjee, challenged the restrictions before the Calcutta High Court. The court, however, declined to grant interim relief and did not lift the debit freeze.

The ED subsequently initiated its own investigation, taking cognisance of allegations that proceeds of corruption and extortion may have been routed through the accounts — bringing the matter within the ambit of the Prevention of Money Laundering Act (PMLA). On Tuesday, ED officials conducted raids and searches at five locations in Kolkata in connection with the probe.

What Happens Next

With the Calcutta High Court declining interim relief and the ED's investigation now formally underway, the Trinamool Congress faces simultaneous legal and political pressure. The party's internal factional conflict — which triggered the original freeze — remains unresolved, and the outcome of the ED probe could have significant implications for the former ruling party's finances ahead of future electoral cycles.