Congress Says Income Tax Department Froze Its Accounts, Gets Relief From Tribunal

The Indian National Congress said its bank accounts were frozen by the Income Tax Department weeks ahead of the nation's general election is expected to kick off, before an appellate tribunal provided it relief till further hearing.

The bank accounts of the Congress party were frozen over an income tax demand of Rs 210 crore.

Congress Treasurer Ajay Maken, who had earlier addressed a press conference to announce that Income Tax authorities had frozen its accounts, said the tribunal has put a lien of Rs 115 crore on its accounts and the party has been allowed to spend over and above that.

"On our petition, Income Tax Department and the Income Tax Appellate Tribunal has said that we have to ensure that Rs 115 crore have to be kept in the Banks. This Rs 115 crore is the lien marked in the Bank Accounts," Maken said on X.

"We can spend an amount over and above that," he said in a post on X.

"This means that Rs 115 crores have been frozen. This Rs 115 crores is much more than we have in our Current Accounts," he explained.

Party leader Vivek Tankha, who appeared before the Income Tax Appellate Tribunal against the order, said the party was now allowed to operate its bank accounts. The tribunal will hear the matter next Wednesday before a final decision is taken on the matter.

Tankha said he told the tribunal that the Congress would not be able to participate in the 'festival of elections' in case its accounts remain frozen.

Earlier, Ajay Maken, treasurer of the party, said in a press conference that the party's four bank accounts had been frozen. The tax department raised a demand of Rs 210 crore for 2018-19, he said, calling it politically motive action in the run-up to the election.

The party was unable to use even the funds received under its crowdfunding scheme, Maken said, alleging that democracy was in danger in the country. "For the first time in the country's history, accounts of the principal opposition party have been frozen by the tax authorities on flimsy grounds, barely two weeks before the announcement of general elections," he said.

"Democracy doesn't exist. This is like a one-rule party," he said, adding the Congress will seek justice from the judiciary, media, and the people.

Congress president Mallikarjun Kharge said in a post on X, 'Power drunk Modi Government has frozen the accounts of the country's largest Opposition party—the Indian National Congress—just before the Lok Sabha elections."

"This is a deep assault on India's Democracy," he added. Unconstitutional money collected by the BJP would be utilised by them for elections, but the money collected by the Congress through crowdfunding shall be sealed, the party president said.