Financial Setback for Congress: Income Tax Freeze on Bank Accounts Raises Eyebrows Ahead of Elections
New Delhi, 16th February 2024: The Congress party is claiming that the Income Tax department has frozen its bank accounts, including those of the Youth Congress, citing a tax demand of ₹210 crore. The timing, just weeks before the Lok Sabha elections’ announcement, has sparked accusations from Congress, labelling the move as a politically motivated attempt to disrupt the party’s election preparations.
Expressing dismay, Ajay Maken, the party treasurer, called it a “disturbing blow to the democratic process.” He characterized the action as an erosion of democracy and an attempt to suppress the principal opposition party. Seeking justice, Maken announced that legal action has been initiated, with the matter currently under consideration by the income tax appellate tribunal.
The freezing of four accounts has raised concerns about the party’s ability to manage election-related expenses, with banks instructed not to accept or honour Congress’ cheques, diverting the frozen funds to the Income Tax department.
Maken argued that while the party had submitted its accounts late in the election year of 2018-19, freezing accounts was an extreme measure, especially considering past instances where such actions were not taken. The suspicious timing of the freeze just ahead of the general elections has fueled doubts about the motives behind the Income Tax department’s actions.
Congress President Mallikarjun Kharge expressed concerns about the Modi government’s exercise of power, viewing the account freeze as a severe blow to democracy. He accused the government of favouring the use of unconstitutional money by the BJP while impeding Congress’s activities, impacting crucial aspects such as electricity bills, staff salaries, and their Bharat Jodo Nyay yatra.
Kharge appealed to the judiciary to safeguard the multi-party system, expressing a commitment to protest against perceived injustice and dictatorship. The account freeze incident coincides with the Supreme Court’s decision to strike down the electoral bonds scheme, aimed at enhancing transparency in political funding.
