The Congress today attacked the BJP-led central government after the party’s bank accounts, including those of the Youth Congress, were frozen by the Income Tax department ahead of the upcoming Lok Sabha elections. However, just an hour later, the Income Tax Appellate Tribunal (ITAT) in Delhi unfroze the accounts.
The I-T department had reportedly imposed a penalty of Rs 210 crore for late filing of ‘FY 2018-19’ accounts. A total of four accounts were affected. According to reports, banks have been directed not to honour Congress” cheques, with the frozen funds to be surrendered to the Income Tax department.
This action follows Thursday’s landmark judgment by the Supreme Court which invalidated the electoral bonds scheme. Introduced by the government on January 2, 2018, this scheme aimed to replace cash donations and enhance transparency in political funding.
Congress treasurer Ajay Maken described it as a “disturbing blow to the democratic process.” The freezing of accounts, reportedly stemming from a tax demand of ₹210 crore raised by the Income Tax department, is perceived by the Congress as politically motivated and strategically timed to disrupt their election preparations.
“Democracy doesn”t exist; this is like a one-rule party, and the principal opposition party has been subjugated. We seek justice from the judiciary, media, and the people,” Maken said during a press meet.
Maken revealed that the party has initiated legal proceedings in response to the freeze, with the matter currently under review by the income tax appellate tribunal. The decision to disclose this information was withheld earlier due to the pending hearing.
Maken argued that while the party had submitted its accounts 45 days late for 2018-19, freezing the accounts constitutes an extreme measure. He cited instances where similar actions were not taken in the past.
The timing of the freeze, just ahead of crucial general elections, has raised suspicions about the motives behind the Income Tax department”s actions, according to Maken. “Right now, we have no money to spend. Electricity bills, staff salaries, our Nyay yatra, everything is impacted. Look at the timing; this is clear. We have only one PAN, and the four accounts are all linked,” he said.
Congress chief Mallikarjun Kharge condemned the move as “a grave assault on India”s democracy.” He accused the Modi government of being high on power.
“Power drunk Modi Govt has frozen the accounts of the country’s largest Opposition party – the Indian National Congress – just before the Lok Sabha elections. This is a deep assault on India”s Democracy. The UNCONSTITUTIONAL money collected by the BJP would be utilised by them for elections, but the money collected by us through CROWDFUNDING shall be sealed!” the senior Congress leader wrote on X.
He urged the judiciary to safeguard the multi-party system and democracy in India. “We will take to the streets and fight strongly against this autocracy! #DemocracyUnderAttack,” he announced.
