India’s Congress says $25m frozen by tax department ahead of election

Main opposition party says bank accounts frozen just weeks before the expected announcement of the general election.

The Indian National Congress party says its bank accounts with 2.1 billion rupees ($25.3m) in deposits have been frozen by the Income Tax Department months before the national election.

The main opposition party on Friday called the action “a deep assault on India’s democracy”, adding that an income tax tribunal has allowed it to partially operate its accounts until February 21 when it would hear the case.

Congress treasurer Ajay Maken told reporters the party has filed a complaint against the tax department after it told banks to freeze funds in its accounts.

“We got information two days back that cheques being issued by us were not being honoured by banks. … We don’t have money to pay electricity bills, to pay salaries to our employees,” Maken said.

The tax department’s action comes just weeks before dates for a general election, which has to be conducted by May, are to be announced.

It also came a day after the Supreme Court, in a landmark order, declared a secretive election funding system, called the electoral bonds, as illegal. The scheme was launched by Prime Minister Narendra Modi’s government in 2017.

“When the principal opposition party’s accounts have been frozen just two weeks before the announcement of the national elections, do you think democracy is alive in our country?” Maken asked reporters.

“Don’t you think it is going towards a one-party system?”

Maken said the 2.1 billion rupees frozen by the tax department was collected by the party through crowd funding and membership drives, adding that the dispute with the tax department was in connection with an issue dating back to 2018-2019.

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