Issue Of Entitlement To Party's Assets Must Be Determined First: Apex Court Refuses To Unfreeze AITC Bank Accounts For Expenses
The Court declined to grant interim relief, saying that releasing the funds without proper verification regarding entitlement to party assets would cause substantial prejudice.
The Supreme Court disposed of a plea filed by the All India Trinamool Congress (AITC) seeking interim directions to operate four debit-frozen Indian Bank accounts for election and political expenses beyond routine administration.
The Court was hearing a plea assailing the order passed by the Calcutta High Court, which refused to pass any new interim orders, as none were required at this stage for operating the bank accounts.
AITC has sought interim directions to operate four additional bank accounts for expenditure beyond routine administration, specifically including election expenses, contending that the High Court erred in applying conditions from an earlier order pertaining to a different set of accounts.
Previously, the Supreme Court had asked the Enforcement Directorate (ED) whether some amount could be released from the frozen bank accounts of the Mamata Banerjee-led faction of the TMC in favour of a court-appointed special officer to meet the day-to-day expenses of the party.
The Bench of Justice MM Sundresh and Justice PB Varale ordered, "The larger issue of entitlement to the party's assets must be determined first, and releasing the amounts to the petitioner without verification would cause substantial prejudice...Expressing any opinion on the merits at this stage would significantly impact the pending writ petition. The arguments raised can be properly considered during the hearing of the main writ petition...Keeping that in mind, we refrain from evaluating the merits of the case at this stage, particularly as this appeal arises from an interim application. The appropriate remedy for the applicant is to request the High Court to expedite the hearing of the main writ petition. The matter is disposed of accordingly."
Senior Advocate Abhishek Manusinghvi appeared for the Petitioner, while Solicitor General Tushar Mehta and Senior Advocate K Parmeshwar appeared for the Respondents
A writ petition was filed before the Calcutta High Court challenging a criminal prosecution. AITC sought permission to operate four bank accounts held at Indian Bank that were debit-frozen following the initiation of the criminal case.
The Court noted a previous interim order dated July 9, 2026, in another WPA 14081 of 2026, where a Court-appointed Special Officer was permitted to operate accounts for day-to-day/monthly expenditures. This arrangement was left undisturbed by the Supreme Court in its order dated August 11, 2026.
Singhvi submitted, " Every day, a political party's oxygen is paralysed. Minimum ₹12 crores per month is for political... on audited accounts for the last two or three years! Not now, now it will be more. Much more. In a democracy, to be paralysed by the state police."
He added, "I am asking for relief over and above this because that order covered day-to-day expenses, and you cannot run a political party's election campaign or cover major legal fees strictly on day-to-day allowances. Please. Now, just note one thing: the judicial element of a Magistrate is nowhere involved here. Consider the larger picture. I represent the ruling party. West Bengal, of course, is a very peculiar state where the officially recognized opposition officially supports the ruling party! There is no real opposition. It is the only place I know on planet Earth like that. Now, the main opposition group that lost in the internal party dynamics is being paralyzed by the state police! In this case, the police did not go before a Magistrate; no judicial mind was applied."
Per Contra, Mehta submitted, "This was in the context of a different FIR and a different investigation. Please have a look: "Taking note of the concerns expressed on behalf of the rival parties..." Here, one party claims "I am the real Trinamool," while another party claims "I am the real Trinamool." There is an order passed directing the Election Commission to decide which entity is the real Trinamool; we will not delve into that. "
Justice Sundresh said, "What he is trying to say is that this dispute is not between the petitioner and you; it is between the petitioner and the rival faction."
Mehta submitted that the allegation is that under a previous administration, government land was illegally converted to private ownership and sold. Statements have been recorded stating that converted land was sold for crores, and those proceeds were deposited into these accounts, which is under investigation.
Senior Advocate K Parmeshwar, appearing for Biswanath, submitted that by order dated September 17, 2026, the Election Commission has frozen the party symbol.
Previously, the ED also froze the three bank accounts, with balances totalling Rs 440.42 crore, in connection with its money laundering probe arising out of an FIR lodged by the West Bengal Police over alleged dishonest financial transactions, unlawful collection of money and routing of suspected funds through certain party accounts.
Accordingly, the petition was disposed of.
Cause Title: All India Trinamool Congress v. State of West Bengal & Ors. [SLP(Crl) No. 180642026]