SC Urges ED to Consider Releasing Funds from Frozen TMC Accounts
UPSC / SSC current affairs note · Polity
Why in news
The Supreme Court has asked the Enforcement Directorate to consider releasing funds from three frozen bank accounts of the Trinamool Congress (TMC) to meet daily expenses and legal costs. This comes as the party's appeal against a Calcutta High Court order is pending, and the court has listed the matter for next week.
Background
The ED had frozen three HDFC Bank accounts of the TMC as part of a money laundering investigation. The Calcutta High Court on July 20 refused interim relief to the party, prompting the TMC to appeal to the Supreme Court.
Key facts
The Supreme Court bench of Justices MM Sundresh and PB Varale heard the TMC's appeal.
The court suggested releasing some funds for the party's daily expenses and legal costs through a court-appointed administrator.
The bench clarified it was not expressing any opinion on the merits of the dispute, which is pending before the Calcutta High Court.
Senior advocates Kapil Sibal and Menaka Guruswamy appeared for the TMC, arguing the party was 'completely stifled monetarily'.
The ED's Additional Solicitor General SV Raju argued that the freezing order was passed before an administrator was appointed and that the TMC had other accounts.
The court questioned the ED's stand, asking, 'What are the proceeds of crime you are talking about?'
The matter has been listed for hearing next week.
The freezing was done under the Prevention of Money Laundering Act (PMLA).
Prelims pointers
- Enforcement Directorate (ED): Central agency under the Department of Revenue, Ministry of Finance.
- Prevention of Money Laundering Act (PMLA), 2002: Key legislation for money laundering cases.
- Supreme Court of India: Apex court with constitutional authority.
- Calcutta High Court: High court for West Bengal.
- Trinamool Congress (TMC): Political party led by Mamata Banerjee.
- HDFC Bank: Private sector bank in India.
Mains angles
- Discuss the role of the judiciary in ensuring fair trial and fundamental rights in the context of attachment of property under PMLA.
- Critically examine the balance between investigative powers of agencies like ED and the rights of political parties.
- Analyze the implications of freezing party funds on the democratic process and electoral funding.