The Congress party made an announcement today stating that the bank accounts of the party, including those of the Youth Congress, have been frozen by the Income Tax department. This action has taken place weeks before the general elections are scheduled to be announced. Ajay Maken, the party spokesperson, expressed his concern over this move, referring to it as a “disturbing blow to the democratic process”.
The freeze is said to be a result of a tax demand of ₹ 210 crore imposed by the Income Tax department. The Congress party believes that this action is politically motivated and strategically timed to disrupt their election preparations. Mr. Maken emphasized the need for justice from the judiciary, media, and the people, stating that this situation reflects a lack of democracy and the subjugation of the principal opposition party.
The freezing of the party’s accounts has prompted the Congress leader to take legal action, which is currently being reviewed by the income tax appellate tribunal. During a press conference, Mr Maken clarified that they had chosen not to disclose this information earlier due to the ongoing hearing.
Yesterday, the party was informed about the freezing of its accounts, affecting a total of four accounts, as stated by the party’s lawyer, Vivek Tankha. Instructions have been given to banks not to accept or honor any cheques from the Congress, and the frozen funds will be handed over to the Income Tax department.
Mr Maken argued that although the party had submitted its accounts 45 days late in the election year of 2018-19, freezing the accounts is an extreme measure. He pointed out that there have been instances where such actions were not taken, citing cases and precedents.
“We have provided the names of all MLAs and MPs who have made contributions, based on the Manmohan Singh committee report,” Mr Maken emphasized.
The Congress leader expressed suspicions about the motives behind the Income Tax department’s actions, particularly due to the timing of the freeze just before the crucial general elections.
Currently, we are facing a financial constraint and are unable to allocate any funds. Our expenses, including electricity bills, staff salaries, and our Nyay yatra, are all affected. The timing of this situation is quite evident,” he expressed. “Furthermore, we only possess one PAN, and all four accounts are interconnected.”
Additionally, this decision has been made shortly after the Supreme Court’s significant ruling to invalidate the electoral bonds scheme. The government had introduced this scheme on January 2, 2018, with the aim of substituting cash donations and improving transparency in political funding.