Supreme Court Declines To Interfere With Calcutta HC’s TMC Bank Accounts Freeze Arrangement In ED Probe

New Delhi, August 11, 2026: The Supreme Court on Tuesday refused to interfere with the Calcutta High Court's restrictions on the operation of bank accounts of the All India Trinamool Congress (TMC) that were frozen in connection with an Enforcement Directorate (ED) money laundering investigation.

A Bench of Justices M.M. Sundresh and P.B. Varale said the High Court's arrangement was "balanced" and disposed of petitions filed by the TMC and rebel party leader Biswanath Das.

The Supreme Court said it would not enter into the merits of the dispute at this stage and left the parties free to raise their objections before the Special Officer appointed by the High Court and in the main proceedings pending there, Live Law and Bar & Bench reported.

SC Backs Existing Arrangement

"We will not say anything. We will dispose of both the matters and leave it to the discretion of the Special Officer appointed by the High Court. Whatever you want to say, say it in the main petition," Justice Sundresh said.

The court observed that the High Court's July 9 arrangement ensured that the party's day-to-day operations were not stalled. It also allowed Das to place his objections before the Special Officer.

The case before the Supreme Court arose from the TMC's challenge to the Calcutta High Court's July 20 interim order refusing further relief over three HDFC Bank accounts, as well as the July 9 order permitting limited operation of certain accounts for daily expenses under the supervision of a court-appointed Special Officer.

Das, who claims to represent the real TMC, had separately challenged the July 9 order.

The Supreme Court's approach effectively leaves the existing interim mechanism untouched. It also indicates that, for now, the court considers the question of whether the party can continue its daily operations more important than deciding wider disputes over control of the party or the merits of the money laundering allegations.

TMC Says Freeze Is Crippling Finances

Senior Advocate Kapil Sibal, appearing for the TMC, argued that freezing the accounts had prevented the party from meeting ordinary financial commitments, including salaries and payments to service providers.

He submitted that the party employs about 250 people and that salaries of around Rs 53.23 lakh for the current month were due. He also said the TMC spends about Rs 1 crore a month on 17 offices and has pending payments to agencies providing office personnel and security services, besides vendors engaged for election-related work.

Sibal questioned why the entire amount in the accounts should remain frozen when the alleged proceeds of crime formed only a part of the total funds.

One version of the submissions recorded the alleged proceeds of crime at Rs 60 crore, while another placed the figure at Rs 160 crore. Sibal's broader argument was that the party had more than Rs 400 crore in its accounts and that funds beyond the alleged proceeds of crime should not be blocked.

He also referred to 36 accounts comprising five bank accounts and 31 fixed deposits. According to the TMC, about Rs 164 crore in these accounts was not subject to ED encumbrance. Sibal, however, argued that encashing the fixed deposits would result in the money being credited to accounts that had subsequently been frozen.

He further alleged that accounts of recipients and service providers had also been frozen.

ED Says Funds Remain Available

Additional Solicitor General S.V. Raju, appearing for the ED, disputed the TMC's claim that it could not meet its daily expenses.

Raju said three accounts were available for day-to-day operations under the High Court's July 9 order. He also submitted that accounts maintained with Indian Bank were free from ED encumbrance and that about Rs 125 crore was available to the party.

Another account of the proceedings placed the available amount at around Rs 120 crore.

Raju said two accounts were also free from any encumbrance imposed by the local police. When Sibal disputed the position and said the Indian Bank accounts appeared to be encumbered, Raju offered to file an affidavit stating that the two accounts had not been attached.

At an earlier hearing, the Supreme Court had asked the ED to examine whether some money could be released from the frozen accounts for the TMC's day-to-day expenses.

The competing claims over available funds lie at the heart of the interim dispute: the TMC says its usable money is restricted by the purpose for which particular accounts were created, while the ED maintains that sufficient funds remain available for routine expenditure.

TMC Says Some Accounts Have Specific Purpose

Senior Advocate Menaka Guruswamy, also appearing for the TMC, told the court that some of the accounts described as unencumbered could not simply be used for salaries and office expenses.

She said one account was linked to a newspaper and another contained membership dues intended for members' welfare.

"If we use all this to pay salaries then Mr Raju will come saying that we are using newspaper's money and membership welfare account's money and this is laundering. It will cause governance issues," she submitted.

Guruswamy argued that the three accounts covered by the High Court's interim arrangement were the accounts actually used for day-to-day expenditure.

Rebel Leader Raises Factional Dispute

Senior Advocate K. Parameshwar, appearing for rebel TMC MLA Biswanath Das, opposed the relief sought by the party.

He argued that only one faction should not be allowed to operate the bank accounts when a dispute over which faction represents the TMC remains unresolved.

Parameshwar said the issue of which faction was the real party was pending before the Election Commission. He contended that the High Court's interim arrangement gave one faction control over the accounts and prejudiced the rival side.

"We are saying we are the Trinamool Congress. If we are the TMC then there is no question of allowing only one faction of the TMC to operate the bank account through the interim arrangement that the High Court has made," he submitted.

He also alleged that the complaint arose against the backdrop of large-scale financial irregularities and claimed that one account had received Rs 360 crore within 20 days after the election was lost.

Parameshwar urged the Supreme Court to allow operation of only one account and direct disclosure of the total number of accounts and the funds available in them.

The Supreme Court, however, declined to examine the factional dispute at the interim stage.

"We are not concerned about the factions. We only thought of considering limited relief," the court said.

The Bench made it clear that its focus was confined to whether the existing arrangement sufficiently protected the party's day-to-day functioning.

How The Dispute Began

The case originated from a complaint lodged by West Bengal MLA Biswanath Das with the Bidhannagar Cyber Crime Police on June 18, 2026.

Das alleged that money generated through illegal activities, misuse of influence and dishonest financial dealings had been routed through three HDFC Bank accounts.

An FIR was registered the same day under the Bharatiya Nyaya Sanhita and the Information Technology Act.

The ED registered an Enforcement Case Information Report (ECIR) on June 23, 2026. Following searches, it froze six bank accounts, including three HDFC Bank accounts belonging to the TMC, on July 7, 2026.

The ED has alleged that the case involves transfers of funds to Carewell Aviation India and an associated entity between April 2023 and June 2026 in connection with the purported acquisition of an aircraft and a helicopter.

The TMC has contended that the freezing action was arbitrary, mechanical and unsupported by identifiable proceeds of crime.

High Court Had Allowed Limited Access

On July 9, another Bench of the Calcutta High Court granted limited relief after three TMC bank accounts had been frozen on the directions of the West Bengal Police.

The High Court appointed retired High Court Justice Subrata Talukdar as Special Officer and allowed three accounts to be operated for day-to-day expenses under his supervision until September 30.

The TMC later alleged that the ED froze the party's accounts after the High Court indicated that it was likely to pass an interim order in the police case.

The party subsequently approached the High Court against the ED's action under the Prevention of Money Laundering Act (PMLA).

On July 20, the High Court declined to grant further interim relief. It noted that the ED had not imposed a debit freeze on 36 other accounts said to contain around Rs 164 crore.

The High Court held that it could not examine the legality of the alleged fund transfers at the interim stage. It said the petitioners could raise their objections before the PMLA Adjudicating Authority and in the writ proceedings after the exchange of affidavits.

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The court also noted that the ED had analysed the accounts and recorded reasons to believe that substantial transfers had been made to various entities, which it said justified the freezing order under the PMLA.

The High Court listed the matter for hearing on August 26.

With the Supreme Court now declining to disturb that arrangement, the substantive questions over the ED action, the disputed funds and the rival claims within the TMC remain open for consideration before the High Court and other competent authorities.

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