Trinamool Responds to ED Freeze on Bank Accounts; Agency Outlines Probe
New Delhi: The All India Trinamool Congress (AITC) on Wednesday (July 8) issued an official statement condemning the Enforcement Directorate's (ED) freeze on several of the party's bank accounts. The statement, which called the ED's actions "politically motivated" and "illegal", came hours after the central agency confirmed blocking the party's access to its bank accounts with HDFC Bank, which held around Rs 440 crore.
The ED confirmed it is investigating alleged financial transactions between the AITC and the Carewell Aviation Pvt. Ltd. under the anti-money laundering law (PMLA). It said the investigation is based on an FIR lodged by the West Bengal Cyber Police.
"Searches were conducted in connection with an investigation under PMLA, 2002 based on an FIR lodged by the Cyber Police, Bidhannagar, West Bengal in the matter of alleged dishonest financial dealings, unlawful collection of money and routing of suspected funds through certain bank accounts of All India Trinamool Congress (AITC)," the ED statement said.
The Wire reported on Tuesday (July 7) about the probe and the allegation that the party used its funds to purchase an Embraer Legacy 600 Aircraft and one Agusta 109SP [Grand New] helicopter for Rs 112 crore, which were then leased by the AITC itself, and that a third company was also involved in the transaction.
ED statement
The ED has alleged that AITC transferred Rs 160 crore to Carewell Aviation Pvt. Ltd. and an entity related to it. It says Carewell Aviation transferred Rs 82.96 crore to a newly incorporated related entity. That entity bought the aircraft and helicopter. Both aircraft were then leased to AITC.
"Investigation revealed that around Rs 160 crore was transferred from AITC bank accounts to Carewell Aviation Pvt. Ltd. and its related entity, mostly between April 2023 to June 2026," the ED statement said, adding that another Rs 82.96 crore was transferred by Carewell to a new entity that purchased the aircraft and helicopter.
The statement alleges that an unsecured loan of US $1.7 million was also accessed in 2023, via an entity in the Cayman Islands (a tax haven), to raise a part of the money to pay for the helicopter and airplane.
This is the part of the transaction that appears to have invited the probe agency's attention. As per its statement, the arrangement – involving a third party based in the Cayman Islands – is "dubious" and the investigation would determine their "beneficial purpose".
In other words, the investigation will focus on why money transferred by the AITC to Carewell Aviation was subsequently routed through another company before the aircraft and helicopter were acquired and then leased to the AITC.
As per Section 17(1A) of the PMLA, 2002, the ED can freeze properties or accounts if it believes they are connected to proceeds of crime or relevant to a money laundering investigation.
AITC response: 'politically motivated'
The AITC said all funds held in its bank accounts had been "fully and transparently disclosed. The party has duly reported all donation transactions to the Election Commission of India (ECI) and the Income Tax Department. These disclosures are published annually on the ECI’s website and are available in the public domain".
The party also referred to electoral bonds, stating that details of those, too, were with the Union government of India. It noted that the bonds had been issued by the State Bank of India (SBI) and that the information had subsequently been submitted to the Supreme Court.
Calling the ED's move an abuse of power, the AITC said, "The Enforcement Directorate's decision to freeze the party's bank accounts is a politically motivated act. We strongly condemn this arbitrary and illegal action," the statement said.
The party alleged that the BJP had increasingly used central investigative agencies to target political opponents, describing the latest action as "a serious assault on democratic institutions and the principles of a level playing field".
The statement did not directly address the ED's allegations related to funds being transferred to Carewell Aviation or that the AITC purchased and then leased an aircraft and helicopter.
ED is yet to issue a statement on actions related to Carewell Aviation. The agency said the investigation was ongoing.
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