The Supreme Court on Tuesday, August 11, refused to interfere with the Calcutta High Court’s order restricting the operation of three bank accounts belonging to the Mamata Banerjee-led faction of the Trinamool Congress (TMC). The accounts, containing funds worth around Rs 440.42 crore, were frozen by the Enforcement Directorate (ED) as part of a money-laundering investigation.
A bench comprising Justices M M Sundresh and P B Varale said it was satisfied that the Calcutta High Court had passed a “balanced” interim order that adequately protected the interests of the parties involved. The bench noted that the main writ petitions challenging the ED action were still pending before the High Court and said that any observations on the merits of the case at this stage could affect those proceedings.
“Upon perusing the records, including the impugned order, we are satisfied that the high court has passed a balanced order,” the bench observed. It further said the interim arrangements already put in place were sufficient and, therefore, it was “not inclined to interfere” with the High Court’s orders.
The Supreme Court’s decision came after the TMC faction challenged the Calcutta High Court’s order restricting the operation of three HDFC Bank accounts. While the High Court did not permit unrestricted operation of the accounts, it allowed the party to utilise funds for essential day-to-day expenses. It also appointed a special officer to monitor and oversee expenditure from the accounts.
Justice Sundresh observed that the High Court’s July 9 order would not completely paralyse the party’s routine functioning. The Supreme Court’s decision therefore leaves the interim arrangement intact while the substantive legal challenge continues before the Calcutta High Court.
The ED had frozen the three TMC-linked HDFC Bank accounts as part of its money-laundering probe following an FIR registered by the West Bengal Police. The agency has alleged that the case involves dishonest financial transactions, unlawful collection of money and the routing of suspected proceeds through certain accounts linked to the TMC.
According to the ED, the three accounts contained approximately Rs 440.42 crore. The agency is investigating alleged fund transfers involving Carewell Aviation India and a company associated with it between April 2023 and June 2026.
The probe has also examined alleged transactions connected with the purchase of an aircraft and a helicopter. On July 7, the ED froze six bank accounts in total, including the three accounts linked to the TMC.
The case originated from a complaint filed on June 18 by West Bengal MLA Biswanath Das before the Bidhannagar Cyber Crime Police. The complaint alleged that illicit proceeds and suspicious financial transactions had been routed into the three HDFC Bank accounts. An FIR was subsequently registered, following which the ED recorded an Enforcement Case Information Report (ECIR) on June 23.
Following searches and further investigation, the agency froze the accounts on July 7.
The TMC has opposed the freezing of its accounts, describing the ED’s action as arbitrary and without sufficient legal basis. The party sought permission to operate the accounts without restrictions, arguing that the freezing of such substantial funds could adversely affect its functioning.
However, the Calcutta High Court declined to grant unrestricted access and instead adopted an interim arrangement allowing the party to meet its routine expenses under supervision.
The Supreme Court has now endorsed that approach, making it clear that the merits of the money-laundering allegations and the legality of the ED’s action will be considered by the High Court in the pending proceedings.
The ruling does not finally determine the ownership or legality of the funds under investigation. Instead, it preserves the existing arrangement until the Calcutta High Court adjudicates the main petitions challenging the freezing of the accounts.
Leave Your Comment