SC nudges ED to release funds from frozen TMC accounts
New Delhi, Aug. 4 -- The Supreme Court on Monday urged the Enforcement Directorate (ED) to consider releasing some money from three debit-frozen bank accounts of the Trinamool Congress (TMC), observing that the Mamata Banerjee-led party would require funds for its day-to-day functioning and legal expenses even as the legality of the freezing order remains under challenge.
A bench of justices MM Sundresh and PB Varale asked the central agency to obtain instructions and revert after a week, while clarifying that it was not expressing any opinion on the merits of the dispute, which is pending before the Calcutta High Court.
"We have suggested both sides that some amount can be released for the administrator for daily expenses and some other necessary expenses. We clarify that we have not dealt with the merit of the case since the matter is pending before the Calcutta high court," said the bench, listing the matter next week. The observations came during the hearing of the TMC's appeal against a July 20 Calcutta High Court order refusing interim relief against ED's decision to freeze three HDFC Bank accounts of the party as part of a money laundering probe.
Appearing for the TMC, senior advocates Kapil Sibal and Menaka Guruswamy submitted that the party had been left "completely stifled monetarily", contending that it had no funds to pay salaries, legal expenses or meet routine organisational expenditure because of the freezing order. Questioning ED's stand, the bench asked: "It looks very vague. What are the proceeds of crime you are talking about?" It also sought to know the basis on which the agency had frozen the entire amount lying in the accounts.
Additional solicitor general SV Raju, appearing for ED, responded that the freezing order had been passed before the administrator was appointed....
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