Calcutta High Court Rejects TMC Plea to Operate Frozen Bank Accounts
The Calcutta High Court on Monday rejected a plea by the Mamata Banerjee-led faction of the Trinamool Congress (TMC) to operate three frozen bank accounts, rejecting the claim of a prima facie case
in favor of the petitioners. The court directed the Enforcement Directorate (ED) to file an affidavit-in-opposition within three weeks, with the matter set for further hearing on August 26, according to Indiatimes.
The three accounts, containing a combined balance of ₹440.42 crore, were frozen by the ED as part of a money laundering investigation. The agency’s preliminary probe alleged that ₹160 crore was transferred from the TMC’s accounts to Carewell Aviation India Pvt. Ltd. and its related entity between April 2023 and June 2026, with ₹82.96 crore later routed to another newly incorporated entity, according to Indiatimes and Telegraph India.
The court noted that the ED’s freezing order, issued on July 7, was not brought to the attention of a coordinate bench led by Justice Saugata Bhattacharyya. Neither the state nor the petitioners informed the bench about the order, as the central agency was not a party to earlier proceedings, according to Indiatimes.
ED’s Money Laundering Probe Links TMC Accounts to Aircraft Purchase
The ED’s investigation centers on alleged money laundering linked to the purchase of an Embraer Legacy 600 business jet and an AgustaWestland 109SP helicopter. According to officials, ₹112 crore from the TMC’s accounts was allegedly used for these purchases, as reported by Indiatimes and Telegraph India.
The agency’s Enforcement Case Information Report (ECIR) was initiated following an FIR registered by the West Bengal Police over alleged dishonest financial transactions, unlawful collection of funds, and suspected routing of money through certain party accounts.
The ED’s action forms part of its probe into these transactions, as stated in Live Law.
The court’s decision came after the TMC challenged the ED’s ECIR, arguing that the agency’s actions aimed to nullify an earlier court order. In a separate proceeding, Justice Bhattacharyya had permitted the Mamata Banerjee faction to use the accounts under a special officer’s supervision after they were frozen by the West Bengal Police, according to Live Law.
Context of Previous Court Orders and Police Actions
On July 9, 2026, Justice Bhattacharyya’s bench directed the police to allow the Mamata Banerjee faction to use the accounts for day-to-day and legal expenses under a special judicial officer. However, the ED’s subsequent freeze of the same accounts on July 8 led to the latest legal challenge, according to The Hindu.
The court’s July 20 order emphasized that the ED’s freeze was not related to the earlier police action, as the agency’s investigation is governed by the Prevention of Money Laundering Act, 2002 (PMLA). The court also noted that the ED had not imposed a debit freeze on 36 other TMC accounts containing ₹164 crore, as reported in The Hindu.
Broader Implications of the Freeze on TMC’s Financial Operations
The ED’s freeze extends beyond the three accounts, with the Bidhannagar Police having frozen 12 additional TMC accounts across private and nationalized banks, holding over ₹1,000 crore, as mentioned in The Hindu.
The court’s refusal to grant interim relief leaves the ED’s freeze intact, with the TMC’s ability to access funds dependent on the outcome of the writ petition. The case, titled ALL INDIA TRINAMOOL CONGRESS AND ANR. VS UNION OF INDIA AND ORS.,
is listed under Case No: WPA 16258/2026, as noted in Live Law.
The ED’s investigation remains ongoing, with the agency’s affidavit-in-opposition expected within three weeks. The TMC’s response to the ED’s findings will determine the next steps in the legal battle over the party’s financial operations, according to Indiatimes.
Legal and Political Stakes for TMC and ED
The court’s decision underscores the legal tension between the ED’s investigative powers under the PMLA and the TMC’s claims of political motivation. Senior Advocate Abhishek Manu Singhvi, representing the TMC, argued that the ED’s actions were designed to counteract an earlier court order, as reported in Live Law.
The ED, however, maintained that its investigation was independent and unrelated to the earlier police action. The agency’s focus on transactions involving Carewell Aviation and the alleged purchase of aircraft highlights the broader scrutiny of financial activities linked to political parties, according to Telegraph India.
The case has significant implications for the TMC’s ability to manage its finances, with the party’s leadership facing challenges in maintaining operations amid the freeze. The upcoming hearing on August 26 will determine whether the court will revisit the issue, as noted in Indiatimes.
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