TMC crippled financially as cops freeze party's three accounts holding around Rs 440 cr

Amid a period of political turmoil, former West Bengal chief minister Mamata Banerjee’s Trinamool Congress (TMC) has faced a new setback, this time in financial terms. After 10 rebel MLAs of the party in West Bengal filed complaints, the state police have frozen three of its bank accounts holding around Rs 440 crore.

A senior police officer told PTI that the three accounts maintained with a private sector bank were placed under "debit freeze", preventing withdrawals or outward transactions, though credits may continue to be received.

Also read: Sushmita Dev exclusive: ‘TMC rebels have taken a huge risk’

The party allegedly has in excess of Rs 600 crore in bank vaults. As per the party's audited financial disclosures submitted to the Election Commission, it holds hundreds of crores of rupees in deposits. Rival camps have cited figures ranging from about Rs 534 crore to more than Rs 600 crore in party-controlled accounts.

Rebel MLAs move cyber crime police

The move by the police came a day after several rebel MLAs went to the cyber crime police station under Bidhannagar Police Commissionerate in Salt Lake, Kolkata, seeking to lodge a first information report and a detailed probe into certain bank accounts allegedly linked to the TMC. It happened the same day the Mamata camp sought to disqualify 20 dissident MPs in Parliament, with senior MP Abhishek Banerjee meeting Lok Sabha Speaker Om Birla in New Delhi.

The rebels’ complaints, which questioned the source and utilisation of funds, are related to the same accounts maintained with a private sector bank that has found itself at the centre of an escalating tug-of-war within the beleaguered party that lost power in May.

It was only a few days ago that senior TMC leader and former state minister Aroop Biswas sought freezing of operations in the accounts, expressing concerns over their control and management. As a former treasurer of the party, he had access to the funds till June 5.

Criminal probe sought into funds' source, transaction

The fresh complaints take the matter a step further by demanding a criminal investigation into the funds' source and transactions carried out through the accounts.

As per a a copy of the complaint submitted to the police, the MLAs sought an investigation into transactions in three bank accounts, alleging there was a need to ascertain whether the funds came from lawful sources or from unlawful activities, including collection of alleged cut-money, siphoning of public funds and proceeds of scams.

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“It has come to my knowledge through reliable circumstances and surrounding developments that certain funds, arising out of illegal activities, including misuse of influence, dishonest financial dealings and suspected unlawful collection of money, may have been routed and subsequently deposited into bank accounts," one of the complaints stated, the PTI reported

Rebel TMC MLA Ritabrata Banerjee, who has emerged as the Leader of the Opposition backed by several dissident legislators, was quoted as saying by the agency, “Ten or more MLAs have approached the police seeking an investigation into these accounts as we suspect the money deposited there could be linked to extortion, cut-money collections and possible institutional corruption. Whether there has been siphoning of government funds can only be established by investigating agencies.”

The complaints also sought immediate preservation of banking and electronic records, contending that any delay could result in crucial evidence being altered or destroyed.

The Telegraph cited the police as saying late on Friday (June 19) evening that the TMC’s bank accounts, holding Rs 440 crore, were frozen. The status of the remaining money was not immediately clear, it added.

Mamata camp says Biswas no longer treasurer

Leaders close to Mamata, however, said Biswas was no longer the party’s treasurer and had no authority to block bank accounts, the daily report added. Biswas was replaced by former MP Subhasish Chakraborty as the new treasurer.

TMC spokesperson and MLA Kunal Ghosh told the news agency, "To remove any confusion, it must be stated clearly that Aroop Biswas was once the party treasurer. However, at the executive committee meeting held on June 5, it was unanimously decided that Subhasish Chakraborty would be the treasurer. Since then, he has been discharging that responsibility."

A senior MLA loyal to Mamata said the faction had learnt about the police action but was awaiting formal communication.

"We have heard that the three accounts have been frozen. We will know the exact details by this evening," the MLA told PTI.

Also read: Amid TMC split, ex-treasurer seeks freeze on party’s bank accounts

The Telegraph also cited one of the rebel MLAs as saying that they will take control of the funds, even if it takes time. The legislator said the matter may reach the EC and the Supreme Court, adding that they were taking the steps to ensure that Mamata and Abhishek did not empty the accounts.

Ghosh slammed the rebels, saying they had contested the elections and won using money given from the party’s funds. He questioned why they accepted the money if the accounts were not legal.