The income Tax department had seized Congress party’s four main bank accounts on ‘flimsy grounds’, leaving the party with no money to pay bills and salaries, party leader and treasurer Ajay Maken alleged on Friday.
Maken said, “I have very disturbing news to share with all of you. The accounts of the Congress party have been frozen and also those of the Youth Congress have been frozen.”
“When the principal opposition party’s accounts have been frozen just two weeks before the announcement of the national elections. Do you think democracy is alive in our country?” Maken said.
The accounts were frozen on an Income Tax demand of ₹210 crore for 2018-19, an election year, Maken said adding that the grand old party has already appealed to the Income Tax appellate authority.
“We got information yesterday that banks are not honouring the cheque we are issuing. On further investigation, we got to know that the Youth Congress bank accounts have been frozen. The accounts of the Congress party have also been seized. Income tax asked for ₹210 crore recovery from Youth Congress and Congress party. The crowdfunding money in our accounts has been frozen. Just 2 weeks before elections when the opposition’s accounts are frozen, it is equivalent to freezing the democracy,” the former Union Minister told newspersons at AICC office in New Delhi.
He further elaborated, “Income Tax Department and the Income Tax Appellate Tribunal (ITAT) has said that we have to ensure that ₹115 crores have to be kept in the Banks. This 115 crore is the line marked in the Bank Accounts.”
“We can spend an amount over and above that. This means that ₹115 crores have been frozen. This ₹115 crores is much more than we have in our Current Accounts”
Don’t have money to pay salaries, bills: Maken
Questioning the motive behind the alleged freeze of party accounts ahead of the upcoming parliamentary elections, the Maken said it was for first time in the country’s history that the accounts of country’s principal opposition party have been frozen by the tax authorities.
“Right now we don’t have any money to spend, to pay electricity bills, to pay salaries to our employees. Everything will be impacted, not only Nyay Yatra but all political activities will be impacted…”
Meanwhile, Congress MP Rahul Gandhi-led Bharat Jodo Nyay Yatra arrived in Bihar on Friday. The Yatra reached its final stage in Bihar and is scheduled to enter Uttar Pradesh later today.
Congress general secretary Priyanka Gandhi Vadra will also join the Bharat Jodo Nyay Yatra led by Rahul Gandhi as it enters Uttar Pradesh on Friday evening. She will join her brother in Chandauli in Uttar Pradesh after the yatra enters the state from Bihar.
Later Unfrozen
Senior Congress leader Vivek Tankha said on Friday that the party’s bank accounts were unfrozen by the Income Tax Appellate Tribunal after the party filed an appeal. Tankha’s clarification came shortly after the party’s another leader Ajay Maken alleged at a press conference in New Delhi that the IT department had frozen the party’s main bank accounts.
Tankha, who appeared before the tribunal against the order, said the Congress was now allowed to operate its bank accounts. The tribunal will hear the matter next Wednesday before a final decision is taken on the matter. Tankha said he told the tribunal that the Congress would not be able to participate in the “festival of elections” in case its accounts remain frozen.
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Published: 16 Feb 2024, 11:40 AM IST