The Supreme Court on Monday asked the Enforcement Directorate (ED) whether a limited amount from the All India Trinamool Congress' (TMC) frozen bank accounts could be released to a court-appointed administrator to meet the party's day-to-day expenses.
According to Bar and Bench, a Bench of Justices M.M. Sundresh and P.B. Varale was hearing a special leave petition filed by the Mamata Banerjee-led TMC faction challenging the Calcutta High Court's July 20 order refusing interim relief against the ED's freezing of nearly ₹440 crore in three HDFC Bank accounts under the Prevention of Money Laundering Act (PMLA).
Court Suggests Limited Access Under Administrator's Supervision
During the hearing, the Bench indicated that some funds could be released to the court-appointed administrator, observing that the administrator, a retired judge appointed earlier by the Calcutta High Court, would remain accountable for the utilisation of the money.
The judges clarified that they were not inclined to lift the freeze on the accounts entirely, as the merits of the case are already before the High Court. Instead, they said the immediate concern was ensuring that the political party's routine functioning was not adversely affected, Bar and Bench reported.
ED, TMC Differ Over Availability Of Funds
Appearing for the Enforcement Directorate, Additional Solicitor General S.V. Raju submitted that around ₹164 crore lying in 36 other TMC bank accounts remains unattached and unfrozen.
However, Senior Advocate Kapil Sibal, appearing for the TMC, disputed the ED's submission and sought relief from the Supreme Court. Senior Advocate Menaka Guruswamy also argued that the party was struggling to meet basic operational expenses, including the payment of employee salaries, according to Bar and Bench.
After hearing both sides, the Bench granted the ED time to seek instructions on whether a limited amount could be released under the administrator's supervision. The matter has been posted for further hearing on August 11, 2026.
Background Of The Money Laundering Probe
The Enforcement Directorate froze the three TMC bank accounts holding nearly ₹440 crore as part of a money laundering investigation into alleged financial transactions between April 2023 and June 2026.
According to the agency, around ₹160 crore reported in some records as ₹133.84 crore was transferred from TMC accounts to Carewell Aviation India Pvt. Ltd. and related entities. The ED alleges that the funds were used to purchase an Embraer Legacy 600 aircraft and an Agusta 109 helicopter, Bar and Bench reported.
High Court Proceedings And Earlier Account Freeze
Before the ED's action, the three bank accounts had already been frozen by the West Bengal Police following complaints by rebel TMC leaders and MLAs alleging misuse of party funds.
On July 9, another Bench of the Calcutta High Court permitted limited operation of the accounts for day-to-day administrative and legal expenses under the supervision of retired Justice Subrata Talukdar, who was appointed as Special Officer, with the arrangement to continue until September 30.
Subsequently, Justice Krishna Rao of the Calcutta High Court declined interim relief against the ED's attachment, observing that the party continued to have access to other unfrozen accounts containing around ₹164 crore. The High Court held that no strong prima facie case or balance of convenience had been established in favour of granting interim relief, according to Bar and Bench.
Court Focuses On Interim Operational Relief
While the TMC has maintained that the ED's action is politically motivated, the agency has asserted that the account freeze is part of its investigation into suspected proceeds of crime under the PMLA.
For now, the Supreme Court has limited its consideration to whether some funds should be released to enable the party's day-to-day functioning, leaving the larger questions regarding the legality of the ED's action to be decided in the pending proceedings before the Calcutta High Court.
