Calcutta High Court Rejects TMC’s Plea to Unfreeze ₹440 Crore Bank Accounts in ED Money Laundering Probe

Congress (TMC), the Calcutta High Court on Monday refused to grant interim relief to the party seeking to operate three bank accounts frozen by the Enforcement Directorate (ED). The accounts, holding deposits totaling ₹440.42 crore, were frozen under the Prevention of Money Laundering Act (PMLA) amid an ongoing investigation into suspicious aviation asset deals.

Justice Krishna Rao, presiding over a single bench, dismissed the petition seeking an interim stay on the ED’s debit freeze order. The court ruled that no interim permission to operate the frozen accounts would be granted while the writ petition remains pending.

The Probe: Aviation Purchases & Shell Transfers

The central agency’s investigation stems from an initial FIR lodged by the Cyber Police Station in Bidhannagar regarding alleged financial irregularities, unlawful fund collections, and dubious money transfers through political bank accounts.

According to ED submissions in court:

• Fund Transfers: Between April 2023 and June 2026, approximately ₹160 crore was transferred from TMC party accounts to Kolkata-based Carewell Aviation India Private Limited and its associated entities.
• Layering: Out of those funds, Carewell Aviation routed ₹82.96 crore to a newly incorporated related company.
• Luxury Fleet Acquisition: A total of ₹112 crore was spent to purchase a luxury Embraer Legacy 600 business jet and an Agusta 109 SP VIP helicopter.
• Offshore Financing: To make up for a shortfall during the 2023 helicopter purchase, an unsecured loan of $1.7 million (₹14 crore) was arranged from an entity based in the Cayman Islands.

"Purchased with Party Funds, Rented Back to Party"

The crux of the ED’s money laundering case relies on what investigators describe as a highly unusual circular transaction model. Despite the luxury aircraft and chopper being financed through TMC funds transferred to Carewell Aviation, the assets were subsequently leased back to the Trinamool Congress. The party then paid substantial sums to the aviation firm under the guise of "aircraft rental and usage charges".

Investigators are examining whether this arrangement was structured to disguise the ultimate beneficial ownership of the assets or to siphon political funds into private corporate entities.

High-Stakes Legal Battle

Senior Advocate Abhishek Manu Singhvi, representing the TMC, argued that the ED's debit freeze was an attempt to bypass a previous court order that had permitted the party to operate its accounts under a Special Officer. Singhvi contended that all party donations were transparently reported to the Election Commission of India and the Income Tax Department.

However, the ED maintained that its action was part of an independent, statutory investigation under Section 17(1A) of the PMLA into suspected money laundering. Justice Rao’s refusal to lift the freeze leaves ₹440.42 crore locked away, dealing a critical financial blow to the party leadership as legal proceedings continue.