 "Were Rs 115 crore of Congress frozen? The bank accounts row, explained")
Mere hours after the Congress said that four of its bank accounts were frozen by the income tax (IT) department, the Income Tax Appellate Tribunal on Friday (16 February) allowed the Grand Old Party to operate its accounts. The bank accounts have been de-freezed till the next hearing on 21 February. The Congress also confirmed that the tribunal has granted it relief for now. What happened? What has the Congress said? Let’s take a closer look. Congress’ bank accounts frozen Earlier in the day, Congress treasurer Ajay Maken told the media that four bank accounts of the party, including that of the Indian Youth Congress, had been frozen by the IT department. According to PTI sources, the freeze affected nine bank accounts of the Congress. The income tax department had raised a demand of Rs 210 crore from the Congress, as per The Hindu report. Maken said that the Grand Old Party had to file IT returns for 2018-19 by 31 December 2019, but got late by 40-45 days. The Congress leader alleged the IT department’s action was due to this delay in filing the IT return. He said the bank accounts were frozen on “flimsy grounds”. “We don’t have any money to spend, to pay electricity bills, to pay salaries to our employees,” Maken said, adding that all political activities of the Congress will be impacted.
#WATCH | Congress Treasurer Ajay Maken says "We got information yesterday that banks are not honouring the cheque we are issuing. On further investigation, we got to know that the Youth Congress bank accounts have been frozen. The accounts of the Congress party have also been… pic.twitter.com/JsZL1FEy9d
— ANI (@ANI) February 16, 2024
He told reporters that the party received information two days ago that the cheques it was issuing were “not being honoured” by banks. The Congress leader said that the money in the party’s accounts had come from online crowdfunding and membership drives. He dubbed the freezing of accounts a “disturbing blow to the democratic process”. “For the first time in the country’s history, accounts of the principal Opposition party have been frozen by the tax authorities on flimsy grounds, barely two weeks before the announcement of general elections,” Maken told reporters. Congress leaders react Congress president Mallikarjun Kharge lambasted the Central government over the party’s bank accounts freeze. He wrote on X, “Power drunk Modi Govt has frozen the accounts of the country’s largest Opposition party - the Indian National Congress - just before the Lok Sabha elections. This is a deep assault on India’s Democracy!” “The UNCONSTITUTIONAL money collected by the BJP would be utilised by them for elections, but the money collected by us through CROWDFUNDING shall be sealed! That is why, I have said that there won’t be any elections in the future,” the Congress president alleged. He implored the judiciary to “save the multi-party system in this country and protect India’s Democracy.”
Power drunk Modi Govt has frozen the accounts of the country’s largest Opposition party - the Indian National Congress - just before the Lok Sabha elections.
— Mallikarjun Kharge (@kharge) February 16, 2024
This is a deep assault on India's Democracy !
The UNCONSTITUTIONAL money collected by the BJP would be utilised by them…
Congress MP Rahul Gandhi, who is currently leading the Bharat Jodo Nyay Yatra, said that the party will never “bow down” before “dictatorship”. Congress MP Shashi Tharoor described the IT department’s move as “shocking & utterly shameful”. Congress’ bank accounts de-freezed After Maken’s press conference, Congress Rajya Sabha MP and senior Advocate Vivek Tankha, who appeared before the tribunal against the IT department order, said the party was now permitted to use its bank accounts. According to him, he told the tribunal that the Congress would be unable to take part in the “festival of elections” if its bank accounts remain frozen, reported PTI.
VIDEO | "Very graciously, the ITAT has said that there will be only a lien on the bank account. There is no restriction on the bank account," says Congress MP and lawyer Vivek Tankha (@VTankha).
— Press Trust of India (@PTI_News) February 16, 2024
(Source: Third Party) pic.twitter.com/UJyDhCZprk
He said the tribunal will hear the Congress’ appeal for interim relief from the IT department’s action next Wednesday. However, there seems to be a catch. In a post on X, Maken said that the IT department and the tribunal have asked the Congress to keep an amount of Rs 115 crore in lien (akin to collateral) in its bank accounts. This amount will remain untouched and the party can spend above this sum.
#DemocracyFrozen
— Ajay Maken (@ajaymaken) February 16, 2024
On our petition, Income Tax Department and the Income Tax Appellate Tribunal (ITAT) has said that we have to ensure that Rs 115 crores have to be kept in the Banks. This 115 crore is the lien marked in the Bank Accounts.
We can spend an amount over and above…
“This means that Rs 115 crore have been frozen. This Rs 115 crore is much more than we have in our current accounts,” the Congress leader said. With inputs from agencies
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