Supreme Court asks ED to consider releasing funds from frozen TMC accounts

The Supreme Court has urged the Enforcement Directorate (ED) to consider releasing some funds from three frozen bank accounts belonging to the Trinamool Congress (TMC). The court acknowledged that the Mamata Banerjee-led party requires funds for its day-to-day operations and legal costs, even as the validity of the freezing order is under dispute.

These observations were made during a hearing on the TMC's appeal against a July 20 order from the Calcutta High Court. The High Court had refused to grant interim relief against the ED's decision to freeze the party's HDFC Bank accounts as part of a money laundering investigation.

A bench comprising justices MM Sundresh and PB Varale instructed the central agency to seek instructions and provide a response within a week. The court emphasized that it was not expressing any opinion on the merits of the case, which is currently pending before the Calcutta High Court.

Senior advocates Kapil Sibal and Menaka Guruswamy, representing the TMC, argued that the party has been "completely stifled monetarily," lacking funds for salaries, legal expenses, and routine organizational expenditures. Additional Solicitor General SV Raju, appearing for the ED, contended that the order predated the appointment of an administrator and that the TMC had other operational bank accounts.

However, the bench indicated that the ED could consider allowing access to a limited amount through a court-appointed administrator to cover essential expenses, including legal costs. The court listed the matter for further hearing the following week.

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We have suggested both sides that some amount can be released for the administrator for daily expenses and some other necessary expenses. We clarify that we have not dealt with the merit of the case since the matter is pending before the Calcutta high court.