The Indian National Congress, the main opposition party in India, announced on Friday that its access to bank accounts had been reinstated. This revelation came shortly after the party had stated that the federal income tax department had frozen their accounts.
Congress party faced a challenge when the Income Tax department froze its main bank accounts, which also included the accounts of the Youth Congress. However, the party quickly responded by challenging this decision. As a result, the Income Tax Appellate Tribunal intervened and temporarily lifted the freeze on the accounts until a final hearing takes place next week.
Congress clarified its situation by stating that it is required to maintain a sum of ₹115 crore in its bank accounts according to directives from tax authorities. This mandated amount is not to be touched, resulting in the freeze on these funds. A spokesperson for the Congress highlighted the significance of this, noting that ₹115 crore has essentially been immobilized, which exceeds their current account balances.
During a press conference, party treasurer Ajay Maken criticized the decision, describing it as a troubling setback for the democratic process. The freeze, reportedly stemming from a tax demand of ₹210 crore by the Income Tax department, is seen by the Congress as politically motivated and deliberately timed to disrupt its election preparations.
#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…
Maken expresses deep concerns about the situation, comparing it to a scenario of one-party rule that undermines the role of the principal opposition party in a democratic system. He appeals for justice from various stakeholders, including the judiciary, media, and the public.
Additionally, Maken reveals that the party has taken proactive steps by initiating legal action, which is currently being reviewed by the income tax appellate tribunal. The decision to delay disclosing this information was due to the ongoing hearing.
The Congress became aware of the account freeze yesterday, as confirmed by party lawyer Vivek Tankha, who noted the impact on a total of four accounts. Instructions have been issued to banks to reject Congress’ cheques, with the frozen funds slated for submission to the Income Tax department.
Maken argues that while the party was late in submitting its accounts by 45 days during the 2018-19 election year, freezing the accounts is an extreme measure. He highlights previous instances where such drastic actions were not taken, emphasizing the disproportionate nature of the current situation.