The Supreme Court on Monday explored the possibility of granting the All India Trinamool Congress (TMC) limited access to its frozen bank accounts to meet day-to-day expenses while its challenge to the Enforcement Directorate’s (ED) action is pending before the Calcutta High Court.
A Bench of Justice M.M. Sundresh and Justice Prasanna B. Varale asked the ED to consider whether a reasonable amount could be released through Justice (Retd.) Subrata Talukdar, the Special Officer appointed by the High Court, as an interim arrangement. Noting that the writ petition is listed before the High Court on August 20, the Bench requested both sides to cooperate for its expeditious disposal and posted the matter for further hearing on August 11.
Senior Advocates Kapil Sibal and Menaka Guruswamy, appearing for the TMC, argued that the ED’s freezing of the party’s bank accounts under the Prevention of Money Laundering Act (PMLA) was arbitrary and disproportionate. Sibal submitted that while the ED alleged that about Rs 160 crore had been routed through the accounts, it had frozen accounts containing substantially larger amounts. He also contended that the High Court had incorrectly assumed that 36 other accounts containing around Rs 164 crore remained operational, whereas those accounts too had been placed under debit freeze.
Sibal told the Court that the party was unable to meet routine financial obligations, including payment of salaries. He further argued that if the ED alleged that proceeds of crime had been transferred from one account to another, it could not justify freezing the source account itself.
Opposing the plea, Additional Solicitor General S.V. Raju submitted that the PMLA empowers the ED to take preventive action to stop continuing money laundering. The Bench, however, questioned how funds could still be “cycled” if the accounts had already been frozen. Clarifying that it was not examining the merits of the allegations, the Court said all contentions could be raised before the High Court.
The Bench suggested that both sides explore releasing a limited amount through the Special Officer to enable the party to meet essential expenses until the High Court decides the writ petition. The ED sought time to obtain instructions, and the matter has been listed for hearing next Tuesday.
The case stems from a complaint lodged by West Bengal MLA Biswanath Das on June 18, 2026, alleging that funds generated through illegal activities had been routed through three HDFC Bank accounts. Following registration of an FIR, the ED registered an ECIR on June 23 and, after conducting searches, froze six bank accounts, including three belonging to the TMC, on July 7.
The party challenged the freezing orders as arbitrary and unsupported by identifiable proceeds of crime, relying on an earlier High Court order permitting operation of certain accounts through a Special Officer for day-to-day expenses. However, the Calcutta High Court declined interim relief, holding that the petitioners could raise their objections before the PMLA Adjudicating Authority and during the writ proceedings.
It found no prima facie case for interim protection and observed that the ED had recorded reasons to believe substantial fund transfers justified the freezing orders.
The post Supreme Court weighs interim relief for Trinamool Congress, asks ED to consider release of limited frozen fund appeared first on India Legal.