The freeze reportedly stems from a tax demand of Rs 210 crore raised by the Income Tax department.
New Delhi:
The Congress today announced that the party’s bank accounts, including those of the Youth Congress, have been frozen by the Income Tax department, weeks ahead of the announcement of dates for the general elections.
Party treasurer Ajay Maken described the move as a “disturbing blow to the democratic process”. The freeze reportedly stems from a tax demand of Rs 210 crore raised by the Income Tax department, a move that the Congress claims is politically motivated and strategically timed to disrupt the party’s election preparations.
“Democracy doesn’t exist; this is like a one-rule party, and the principal opposition party has been subjugated. We seek justice from the judiciary, media, and the people,” Mr Maken said.
The Congress leader said that the party has taken legal action in response to the freeze, with the matter currently before the income tax appellate tribunal. In a press conference, Mr Maken explained that they chose not to disclose the information earlier as the hearing is pending.
The party learned about the freezing of its accounts yesterday, and the party’s lawyer Vivek Tankha said that a total of four accounts have been affected. Banks have been instructed not to accept or honour Congress’ cheques, with the frozen funds to be submitted to the Income Tax department.
Mr Maken claimed that in the election year of 2018-19, the party submitted its accounts 45 days late, but freezing the accounts is an extreme measure. He argued that there have been cases and precedents where such actions were not taken.
“We have given the names of all MLAs and MPs who have contributed, based on the Manmohan Singh committee report,” Mr Maken stated.
The Congress leader claimed that timing of the freeze, coming just ahead of the crucial general elections, raises suspicions about the motives behind the Income Tax department’s actions
“Right now, we have no money to spend. Electricity bills, staff salaries, our Nyay yatra, everything is impacted. Look at the timing; this is clear,” he said. “We have only one PAN, and the four accounts are all linked.”
The move also comes just hours after the Supreme Court, in a landmark judgment, struck down the electoral bonds scheme. The electoral bonds scheme, introduced by the government on January 2, 2018, was seen as a solution to replace cash donations and enhance transparency in political funding.
