Congress bank accounts frozen by I-T dept, party leaders protests
“We do not have money at present to pay rent, salary to employees, or even make other expenses” - Ajay Maken
“Not just the Congress party’s accounts, but India’s democracy has been frozen”- KC Venugopal
Updated: Feb 17th, 2024
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| Ajay Maken |
As general elections in India near, problems seem to pile up for the INDIA bloc as the income tax department freezes nine bank accounts of the Congress to recover ₹210 cr.
Gujarat Congress protests
Amid the freezing of bank accounts, the Gujarat Congress will hold a protest demonstration at the Income Tax Circle on Ashram Road in Ahmedabad today. The protest will be led by state president Shaktisinh Gohil.
Why are the accounts frozen?
Congress leader and treasurer Ajay Maken says, “All the party accounts, including those of Youth Congress, are “frozen” and made inoperative by the Income Tax Appellate Tribunal (ITAT). We do not have money at present to pay rent, salary to employees, or even make other expenses.”
“The action will not only affect Nyay Yatra but other programmes as well,” added Maken.
However, just after an hour, the party claimed that the accounts had been “defrozen” by the I-T department till Feb 21.
Sources in the I-T department termed it a “routine recovery measure. The tax authorities said that recovery made by withdrawing money from accounts is a “routine recovery measure,” and the Congress accounts were ‘neither blocked nor stopped’. Also, the party has many more accounts for its activities, they said.
Congress owes an outstanding balance of about ₹135 cr for the financial year 2018-19, and this includes a demand of ₹103 cr on account of assessment and interest of approx ₹32 cr.
As per the I-T sources privy to the developments on Congress tax liability, recovery to the tune of ₹115 cr has been affected by withdrawing money from various bank accounts of INC.
INC was requested to pay 20% of the total demand (i.e., ₹21 cr approx.) as per the existing procedure. An amount of ₹78 lakh was paid.
Since INC failed to pay 20% of the outstanding demand, a letter was issued asking it to pay the balance demand of ₹104 cr. The appeal filed by INC before CIT (A) was later dismissed,” the I-T department further said in a statement.
“Democracy is frozen”
Congress general secretary KC Venugopal took to social media, “Not just the Congress party’s accounts, but India’s democracy has been frozen.”
“Barely a month before the 2024 elections, the government chooses to stop the principal opposition party from carrying out any financial transactions—on totally flimsy grounds,” he added.
“When one avenue to tilt the balance was struck down by the courts yesterday, the government has chosen a new route now.”
“The BJP has hoarded over ₹6500 cr through the illegal electoral bond scandal, which remains untouched, but the earnest donations of ordinary INC workers and supporters are frozen,” said Venugopal.
As the ITAT has ‘defrozen’ the accounts until Feb 21, the next hearing is scheduled for the upcoming week.
(With inputs from IANS)
