Supreme Court urges ED to consider releasing funds from frozen Trinamool Congress accounts

SC directed the ED to release funds from the TMC's frozen accounts for daily operations, while the Calcutta HC reviews the freezing order.

The Supreme Court on Monday urged the Enforcement Directorate (ED) to consider releasing some money from three debit-frozen bank accounts of the Trinamool Congress (TMC), observing that the Mamata Banerjee-led party would require funds for its day-to-day functioning and legal expenses even as the legality of the freezing order remains under challenge.

The observations came during the hearing of the TMC’s appeal against a July 20 Calcutta HC order refusing interim relief against ED’s decision to freeze three HDFC Bank accounts of the party as part of a money laundering probe. (HT File)

A bench of justices MM Sundresh and PB Varale asked the central agency to obtain instructions and revert after a week, while clarifying that it was not expressing any opinion on the merits of the dispute, which is pending before the Calcutta High Court. “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,” said the SC, listing the matter next week.

The observations came during the hearing of the TMC’s appeal against a July 20 Calcutta HC order refusing interim relief against ED’s decision to freeze three HDFC Bank accounts of the party as part of a money laundering probe.

Appearing for the TMC, senior advocates Kapil Sibal and Menaka Guruswamy submitted that the party had been left “completely stifled monetarily”, contending that it had no funds to pay salaries, legal expenses or meet routine organisational expenditure.

Additional solicitor general SV Raju, appearing for ED, said that the order was passed before the administrator was appointed. He argued that the TMC operated several other bank accounts and was not entirely without funds. The bench, however, indicated that the agency could consider allowing access to a limited amount through the court-appointed administrator to meet essential expenses, including the legal costs.