Kolkata:
The Calcutta High Court has refused to stay an Enforcement Directorate (ED) investigation into the Trinamool Congress’s party funds.
On June 23, the ED registered an Enforcement Case Information Report (ECIR) based on an FIR lodged by the Bidhannagar Cyber Crime Police, alleging money laundering through the party’s funds. The ED told the court that the Trinamool Congress has 36 bank accounts, of which six have been frozen as part of the investigation.
“Enforcement Directorate has frozen only six accounts, but there are several other accounts in the name of the petitioner No 1 (TMC) which have not been frozen. He further submits that it is not the case of the petitioners that these are the only three accounts of the petitioners and there are no other accounts. Mr ASGI submits that there are other 36 accounts in which an amount of Rs. 164 crores is lying in the name of the petitioner No 1,” the order said.
The ED informed the Calcutta High Court that, during the investigation, it analysed bank accounts maintained by the Trinamool with HDFC Bank and other banks. It said the probe found “substantial” transfers of funds to various entities, leading the investigating officer to conclude that the transactions constituted money laundering.
Accordingly, on July 7, freezing orders under Section 17(1A) of the Prevention of Money Laundering Act (PMLA), 2002, were issued to HDFC Bank and ICICI Bank.
The ED argued that the alleged money laundering could not be viewed in isolation from the illegal activity that generated the funds.
“Transfer of funds amounting to Rs. 133.84 Crores from one of the account of the HDFC to one M/s Carewell Aviation India Private Limited which appears to have been incorporated for the purpose of diversion of funds from AITC accounts. In the freezing order, it is also mentioned that other similar transactions from the accounts of the HDFC bank have been routed for the purpose of siphoning off and using them for personal purposes by the persons authorising control over the accounts unrelated to the mandated purpose,” the ED claimed.
Representing the Trinamool Congress, senior Supreme Court advocate Abhishek Manu Singhvi argued that the FIR and the subsequent ED action were “politically motivated” following the change in government in West Bengal. He also questioned the agency’s action, saying it had failed to identify any specific “proceeds of crime”.
“Freezing action has been undertaken by the Enforcement Directorate in a mechanical and arbitrary manner, without identification or segregation of any specific proceeds of crime. The act of the Enforcement Directorate by freezing the entire amount is in complete disregard of the constitutional and statutory safeguards as provided under law,” Singhvi submitted.
The court observed that, at the interim stage, it could not determine whether the disputed transfers were legal or illegal. It said the Trinamool Congress would have the opportunity to challenge the ED’s allegations before the Adjudicating Authority and during the final hearing of the writ petition.
Justice Krishna Rao, sitting as a single judge, found no grounds to stay the ED’s investigation or its decision to freeze the party’s bank accounts.
