Outlook Explains | Why TMC's Bank Accounts Under Scrutiny?

The Trinamool Congress (TMC) has found itself facing legal challenges on two fronts after multiple bank accounts linked to the party were frozen by the West Bengal Police and the Enforcement Directorate (ED). While the Calcutta High Court has allowed limited operations in three accounts for administrative expenses, the party is still unable to access the funds because the ED has separately frozen the same accounts under the Prevention of Money Laundering Act (PMLA).

The developments come amid an ongoing political and legal battle following the TMC's defeat in the West Bengal Assembly elections. The police investigation stems from complaints made by rebel leaders within the party over the handling of party funds, while the ED's action is linked to a money laundering probe involving the alleged purchase and use of an aircraft and a helicopter.

Together, the cases have resulted in 15 TMC bank accounts, reportedly containing around Rs 1,000 crore, being frozen. Here's a look at how the controversy unfolded and what the investigations are about.

Why West Bengal Police Froze the Accounts?

The latest action came on Friday when the West Bengal Police froze 12 additional bank accounts linked to the TMC.

According to senior police officers, the newly frozen accounts are spread across several public and private sector banks. With this, the total number of frozen party accounts has risen to 15, containing alleged deposits of nearly ₹1,000 crore.

According to The Indian Express, investigators have sought details of the account holders and financial transactions associated with these accounts as part of the ongoing probe.

The latest move follows the freezing of three HDFC Bank accounts that prompted the TMC to approach the Calcutta High Court seeking relief.

What Triggered Police Investigation?

The police action originated after a section of rebel TMC MLAs and leaders raised objections over the party's finances.

Following the Assembly election defeat, the rebel group reportedly wrote to the bank asking it to freeze the party's accounts, citing what it described as a "serious dispute" within the organisation.

The group also approached the cybercrime unit of the Bidhannagar Police, requesting an investigation into the source of the funds deposited in the accounts.

Based on the complaint, the police registered a First Information Report (FIR) and launched an investigation into the financial transactions.

High Court Relief

On Thursday, the Calcutta High Court provided the TMC partial relief by permitting limited operation of three HDFC Bank accounts containing an alleged corpus of Rs 440 crore.

Justice Saugata Bhattacharya appointed retired Justice Subrata Talukdar as a special officer to oversee the operation of these accounts until September 30.

Under the interim arrangement, the party can use the money only for day-to-day administrative expenditure, payment of staff salaries and legal expenses.

Every cheque issued from these accounts must be countersigned by the special officer, who will receive an honorarium of ₹1.25 lakh per month from the party's funds.

The order was passed after the TMC sought urgent intervention from the High Court following the police action.

Why Can't TMC Access Rs 440 Crore?

Although the High Court allowed limited operation of the three accounts, the party remains unable to use the funds because the Enforcement Directorate has independently frozen the same accounts.

The ED invoked provisions of the Prevention of Money Laundering Act (PMLA) as part of its investigation into an alleged ₹160 crore money laundering case involving a private aviation company.

On Friday, the TMC filed a fresh petition before the Calcutta High Court challenging the ED's freezing order.

Senior advocate Kishore Datta argued before Justice Krishna Rao that while the earlier High Court order dealt with the police action in the predicate offence, the new petition concerns the ED's action under the PMLA.

The matter is scheduled to be heard on Monday.

What Is ED Investigating?

The Enforcement Directorate's investigation centres on the alleged purchase and use of an Embraer Legacy 600 business jet and an Agusta helicopter.

According to the agency, the aircraft and helicopter were acquired using funds from the party corpus through a private aviation company.

The ED has alleged that both flying assets were later rented back to the TMC, with substantial payments made in the name of aircraft usage.

In a statement, the agency said, "The Embraer Legacy 600 aircraft and Agusta helicopter were rented to TMC itself, even though they were purchased from the corpus of the party, and substantial amounts were transferred on the pretext of aircraft usage. The above stated dubious arrangement is under probe to ascertain the actual beneficial purpose of the transactions."

The ED has further claimed that the aircraft and helicopter were used exclusively by a senior TMC functionary and that additional funds may have been laundered through rental payments made to the aviation company.

What's Next?

The ED's decision to freeze the accounts is widely seen as a preliminary step before possible attachment proceedings under the Prevention of Money Laundering Act.

The agency is investigating whether funds were routed through shell entities before being used to create personal assets, according to sources cited by The Times of India.

The report added that the ED may question several TMC functionaries, including Chief Minister Mamata Banerjee and party national general secretary Abhishek Banerjee. However, the agency has not made any official announcement regarding summons.