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‘Democracy Frozen’ Says Congress, Calls Action on Accounts Bid to Cripple it Financially

politics
The party said that it had received two notices from the IT department, one for FY 2017-18 and another for FY 1993-94, in a ‘systematic effort’ to deprive the Congress of a level playing field.
Congress leaders at the press conference on Thursday. Photo: Screengrab from video

New Delhi: The Congress on Thursday (March 21) has alleged that democracy in India has been frozen and accused the Bharatiya Janata Party (BJP) government of “crippling” the party financially by freezing its bank accounts ahead of the Lok Sabha elections.

The party levelled the allegations at a press conference in New Delhi attended by its top leadership including president Mallikarjun Kharge, former president Sonia Gandhi, Rahul Gandhi, general secretary (organisation) K.C. Venugopal, media in-charge Jairam Ramesh and treasurer Ajay Maken.

“A systematic effort is underway by the prime minister to cripple the Indian National Congress financially,” said Sonia. “Funds collected from the public are being frozen, and money from our accounts is being taken away forcibly. However, even under these most challenging circumstances, we are doing our best to maintain the effectiveness of our election campaign.”

Referring to the Supreme Court’s judgement last month declaring electoral bonds “unconstitutional”, the former UPA chairperson said that the electoral bond scheme has “benefitted the BJP hugely”.

“On the other hand, the finances of the principal opposition party, the INC, are under a determined assault. This is truly unprecedented and undemocratic,” she said.

Last month, the party had said that the BJP government had frozen its bank accounts  and demanded Rs 210 crore as recovery over an alleged 45-day delay in filing returns and cash contributions from its lawmakers.

Last week the Delhi high court upheld an order of the Income Tax Appellate Tribunal (ITAT) refusing to stay a notice issued by the Income Tax Department to the Congress party for recovery of outstanding tax of over Rs 100 crore.

The IT Department’s counsel informed the court that Rs 65.94 crore had been recovered while the original tax demand stood at Rs 102 crore and together with interest it rose to Rs 135.06 crore, reported PTI.

With its accounts frozen, Rahul said that the party was unable to purchase even a railway ticket to get its leaders to campaign for the elections.

“All our bank accounts have been frozen. We can do no campaign work, we cannot support our candidates. They cannot fly, forget that, they can not even purchase a rail ticket. And this has been done before elections,” he said.

“There are institutions in this country that are supposed to protect the democratic framework but nothing is happening. The Election Commission is not saying anything, the courts are not saying anything. Our ability to fight the elections have been damaged.

“This is a criminal action done by the prime minister and the home minister. The idea that India is a democracy is a lie, is the world’s largest democracy is a lie. 20% of India votes for us and we are not able to pay Rs 2 for anything. This is being orchestrated to cripple us in the elections. Even if our accounts are unfrozen today, a huge amount of damage has been done. And no one is saying anything-the courts of the media are not saying anything. It is the duty of the people of the country as you’re being robbed off the democratic structure and everyone is quiet,” he said.

According to Maken, who is the party treasurer, the Congress received a notice for FY 2017-18, a lien on Rs 210 crore was marked in 11 accounts in four banks. “The reason given is that Rs 14.49 lakh was received in cash (as donations made by our MPs to the Congress party), out of total receipt of Rs 199 crore. This cash component is just 0.07% of the total donations. And the punishment was 106%,” he said.

“Look at the timing of freezing our accounts. We received the Rs 199 crore donation in 2017-18, but after seven years, on February 13, 2024, 210.25 crore lien was marked, our bank accounts were virtually sealed, and later, Rs 115.32 crore was forcibly confiscated.”

Maken said that the party received another notice last week from the IT department for FY 1993-94, when Sita Ram Kesari was the treasurer.

“We are being asked to calculate penal charges for the FY 1993-94 after 31 years of the assessment,” he said.

Kharge said that the BJP is attempting to deprive the Congress of a level playing field in the 18th Lok Sabha elections.

“They don’t want to leave us in a state to fight elections. They want one-sided elections. Our accounts should be unfrozen. And we should have a level playing field for the elections,” he said.

The Congress has said that it will move court and explore legal options and take the message to the people how the party is being deprived of a level playing field.

“We are taking the message to the people through press conferences. This is my third press conference. I thought the senior leadership should be present to take the message to the people and we have done that. Tomorrow PCC (Pradesh Congress Committee) presidents across the country and former CMs will take up the issue through press conferences and we will hit the ground and spread the word to the people,” said Maken to The Wire.

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