The Congress bank account has been restored after a brief freeze, but the money cannot be spent.

The Congress bank account has been restored after a brief freeze, but the money cannot be spent.

The Congress party faced a temporary ban today as the Income Tax department froze key bank accounts including the Youth Congress. However, the party quickly challenged the move, and the Income Tax Appellate Tribunal granted relief by freezing the accounts until the final hearing next week.

Congress explained that the party has been directed to ensure that ₹ 115 crore is maintained in their bank accounts. The amount should remain untouched as per the orders of the tax authorities, indicating that these funds are frozen.

That means ₹ 115 crore has been frozen. This ₹ 115 crore is more than what we have in our current accounts,” the Congress said.

In a press conference today, party treasurer Ajay Maken called this a 'disturbing hit to democracy.' The freeze comes from a ₹210 crore tax demand by the Income Tax department, a move the Congress says is politically motivated and timed to disrupt their election plans.

"There's no democracy; it feels like a party with just one rule, and the main opposition party is suppressed. We're asking for justice from the courts, media, and the people," stated Mr. Maken.

The Congress leader mentioned the party has taken legal steps against the freeze, and it's now with the income tax appellate tribunal. Mr. Maken shared in a press conference that they didn't reveal the details earlier due to the ongoing hearing.

The party found out about the freezing of its accounts yesterday. Congress' lawyer, Vivek Tankha, mentioned that four accounts, in total, are impacted. Banks are told not to accept or cash Congress' cheques and the frozen funds will go to the Income Tax department.

Mr. Maken stated that in the 2018-19 election year, the party submitted its accounts 45 days late, but freezing accounts is an extreme step. He argued that there were instances and examples where such actions were not taken.

#DemocracyFrozen

On our petition, Income Tax Department and the Income Tax Appellate Tribunal (ITAT) has said that we have to ensure that Rs 115 crores have to be kept in the Banks. This 115 crore is the lien marked in the Bank Accounts.

We can spend an amount over and above…

— Ajay Maken (@ajaymaken) February 16, 2024