'Financial terrorism': Congress accuses BJP of 'stealing' its money ahead of polls

Reacting to the Income Tax Department deducting Rs 65.89 crore from AICC, Indian Youth Congress and NSUI accounts, Congress general secretary KC Venugopal on Thursday (February 22) alleged that the BJP is resorting to “financial terrorism” and “stealing money from” their party’s bank accounts.

“They (BJP) are stealing our money from the banks...We also ruled this country, but never resorted to any such move against any of the Opposition parties, including the BJP,” he said, adding that the income tax deduction was an attack on the democratic principles and values. "And they’re trying to shut the voice of India's Opposition...This is clearly an example of dictatorship,” he said.

‘Illegal act’

“Unlike the BJP, this is money contributed by workers of the Indian National Congress, the membership fees of the Indian Youth Congress, and students from the NSUI... this illegal act was committed despite the fact the case is pending for hearing before the Income Tax Appellate Tribunal (ITAT)...,” the Congress said in its statement.

“(But) how justified is the demand of Rs 210 crore for a violation (even if true) of just Rs 14.49 lakhs?” the Congress asked, pointing to the timing of the tax notice. “We filed our return on February 2, 2019... the proceedings of taking out our money took place five years after... two weeks before elections are announced,” said the party.

Senior Congress leader Ajay Maken said Thursday, “We will get our money back but, by then, election will be over.” He wondered, “Has income tax ever been taken from political parties? This is not income... that is why tax is never taken. And, when BJP has never paid income tax, then why take from Congress?”

Moves ITAT

Earlier, Maken on Wednesday posted on his X account that neither the BJP nor the Congress pay the income tax, but still his party is facing Rs 210 crore tax demand. The Congress has moved the ITAT against the recovery of the outstanding tax.

Subsequently, the department told the court that the Congress had violated rules and hence it was being treated as a normal tax payer. It also said that the party was attempting to create a false narrative that “they're being targeted before the general elections”.

Last week, Congress said it has no money to pay its bills as the income tax department froze its accounts over flimsy charges. “Power drunk Modi Govt has frozen the accounts of the country’s largest Opposition party - the Indian National Congress - just before the Lok Sabha elections. This is a deep assault on India's Democracy,” Congress chief Mallikarjun Kharge had said.