The Supreme Court docket on Tuesday refused to intrude with the restrictions imposed by the Calcutta Excessive Court docket in working the financial institution accounts of the All India Trinamool Congress social gathering, that are frozen by the Enforcement Directorate as a part of a cash laundering investigation.
A bench of Justices MM Sundresh and PB Varale was coping with TMC’s plea difficult the Calcutta Excessive Court docket’s July 20 interim order whereby it refused to allow the social gathering to function 3 HDFC financial institution accounts, in addition to the July 9 order which allowed using these accounts for each day bills beneath the supervision of the Court docket-appointed Particular Officer.
The bench additionally heard a separate petition filed by Biswanath Das, a insurgent TMC chief, who challenged the July 9 order, contending that he represents the true social gathering.
The Supreme Court docket disposed of each the petitions, observing that the Excessive Court docket’s order was “balanced”. The Court docket additionally allowed Biswanath Das to lift his objections earlier than the Particular Officer. The Court docket clarified that each one contentions are open to be raised in the principle petition pending within the Excessive Court docket.
“We won’t say something. We are going to get rid of each the issues and depart it to the discretion of the Particular Officer appointed by the Excessive Court docket. No matter you need to say, say it in the principle petition,” Justice Sundresh stated.
Justice Sundresh stated that the July 9 order of the Excessive Court docket ensured that the each day operations aren’t stalled.
Senior Advocates Kapil Sibal, Abhishek Manu Singhvi and Menaka Guruswamy appeared for TMC. Extra Solicitor Common SV Raju appeared for the ED. Senior Advocate Ok Parameshwar appeared for Biswanath Das.
The ED has frozen 3 TMC financial institution accounts allegedly containing round ₹440 crores. In line with the company, the motion types a part of its cash laundering investigation into alleged transfers of funds to Carewell Aviation India and an related entity between April 2023 and June 2026 in reference to the purported acquisition of an plane and a helicopter. Final week, the Court docket had requested ED to discover if some quantity could be launched from the accounts for the social gathering’s each day bills.
Why ought to all the accounts be frozen? Sibal
Sibal submitted that the social gathering had roughly Rs 164 crore in funds which, in keeping with the social gathering, weren’t encumbered by the Enforcement Directorate. He referred to further affidavits regarding 36 accounts, comprising 5 financial institution accounts and 31 mounted deposits. He submitted that if the mounted deposits had been encashed, the proceeds can be credited to accounts which had subsequently been frozen..
“The alleged proceeds of crime is Rs 60 crores. Financial institution has greater than Rs 400 crores. Why ought to all of it’s frozen?” Sibal requested.
He submitted that the freezing of the accounts was stopping the social gathering from assembly its peculiar monetary obligations, together with fee of salaries.
In line with Sibal, the social gathering employs roughly 250 workers and salaries amounting to round Rs 53.23 lakh for the present month had been due. There have been additionally contractual funds to companies offering workplace personnel and safety companies.
He stated the social gathering’s expenditure for 17 places of work was round Rs 1 crore monthly and that invoices of distributors engaged in reference to election-related actions had been additionally pending. Sibal additional alleged that accounts of recipients and repair suppliers had additionally been frozen.
He referred to the Excessive Court docket’s July 9 order, beneath which a former Excessive Court docket decide was appointed as Particular Officer and three accounts had been permitted to be operated for day-to-day expenditure till September 30. Sibal alleged that the investigating company had frozen the accounts after the Excessive Court docket indicated that it was going to cross an interim order. He additionally questioned the attachment of accounts belonging to an organization from which the social gathering had taken aircraft-related companies.
ED: Rs 125 Crore Obtainable For Day-To-Day Operations
ASG Raju submitted that the Supreme Court docket’s earlier concern was whether or not the TMC would be capable of meet its day-to-day expenditure. He stated that three financial institution accounts had been obtainable for day-to-day operations beneath the Excessive Court docket’s July 9 order.
Raju submitted that accounts maintained with Indian Financial institution had been free from any ED encumbrance and that roughly Rs 125 crore was obtainable. He additional said that two of the accounts didn’t have any encumbrance even from the native police. When Justice Sundresh requested how a lot cash was obtainable, Raju maintained that Rs 125 crore was obtainable for the social gathering’s day-to-day operations.
Sibal, nonetheless, disputed this place and submitted that Indian Financial institution’s place confirmed that the accounts had been encumbered. Raju provided to file an affidavit stating that the 2 accounts weren’t connected.
Justice Sundresh clarified that the Court docket was not involved with the dispute between rival factions of the social gathering. “We’re not involved in regards to the factions. We solely considered contemplating restricted reduction,” the Court docket stated.
Rival TMC Faction Opposes Operation Of Accounts
Senior Advocate Ok Parameshwar, showing for insurgent MLA Biswanath Das, opposed the reduction sought by the TMC. He submitted that accounts numbered 2 and 5 within the chart positioned earlier than the Court docket by Sibal had been unencumbered.
Senior Advocate Menaka Guruswamy, for TMC, submitted that one of many unencumbered accounts was a newspaper account and one other represented membership dues and was meant as a welfare account for members. She argued that these accounts couldn’t merely be used to pay worker salaries or workplace hire.
“If we use all this to pay salaries then Mr. Raju will come saying that we’re utilizing newspaper’s cash and membership welfare account’s cash and that is laundering. It is going to trigger governance points,” she submitted.
Parameshwar alleged that the grievance arose towards the backdrop of large-scale monetary irregularities within the accounts.
He added that concern which faction was the true social gathering was pending earlier than the Election Fee. He argued that the Excessive Court docket’s interim association successfully gave one faction management over the social gathering’s financial institution accounts whereas prejudicing the rival faction.
“We’re saying we’re the Trinamool Congress. If we’re the TMC then there is no such thing as a query of permitting just one faction of the TMC to function the checking account by means of the interim association that the Excessive Court docket has made,” Parameshwar submitted.
He additional alleged that one of many accounts had acquired Rs 360 crore inside 20 days after the election was misplaced. He urged the Supreme Court docket to allow operation of just one account, whereas directing the social gathering to reveal the variety of accounts and the funds obtainable in them.
The Supreme Court docket, nonetheless, declined to enter into these factual and factional disputes on the interim stage. The Court docket left it open to the events to lift their respective objections earlier than the Particular Officer and within the pending proceedings earlier than the Excessive Court docket.
Background
The matter arose from a grievance lodged by West Bengal MLA Biswanath Das earlier than the Bidhannagar Cyber Crime Police on June 18, 2026 alleging that funds generated by means of unlawful actions, misuse of affect and dishonest monetary dealings had been routed by means of three HDFC Financial institution accounts.
An FIR was registered on the identical day beneath the Bharatiya Nyaya Sanhita and the Data Know-how Act. The ED registered an ECIR on June 23, 2026 and following searches, froze six financial institution accounts together with three HDFC Financial institution accounts belonging to the AITC on July 7, 2026.
The social gathering contended that the freezing motion was arbitrary, mechanically undertaken and unsupported by any identifiable proceeds of crime. It additionally relied on an earlier July 9, 2026 order of a Coordinate Bench allowing operation of the three accounts by means of a Particular Officer for assembly the social gathering’s day-to-day bills.
The Excessive Court docket nonetheless, held that it couldn’t look at the legality of the alleged fund transfers on the interim stage and that the petitioners would have a possibility to lift their objections earlier than the PMLA Adjudicating Authority in addition to within the writ proceedings after alternate of affidavits.
“This Court docket didn’t discover any prima facie case and stability of comfort and inconvenience in favour of the petitioners. In view of the above, interim order as prayed for by the petitioners, is refused.”, the Court docket stated. It additional famous that the ED had analysed the accounts and recorded causes to imagine that substantial transfers had been made to varied entities, justifying the freezing order beneath the PMLA.
Case Title: ALL INDIA TRINAMOOL CONGRESS AND ANR v. UNION OF INDIA AND ORS.
Case No.: SLP (Crl) 13322/2026
