ED freezes TMC bank accounts in alleged money laundering probe

New Delhi: The Enforcement Directorate (ED) on Wednesday said it has frozen three bank accounts of the Trinamool Congress (TMC) containing deposits of Rs 440.42 crore as part of an investigation into alleged financial irregularities and money laundering.

According to the agency, the action was taken under Section 17(1A) of the Prevention of Money Laundering Act (PMLA), which empowers the ED to freeze assets where seizure is not practicable and there is a risk of the assets being transferred or otherwise dealt with. The freezing order will require confirmation by the PMLA's adjudicating authority within the prescribed time.

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The ED said the three accounts, maintained with HDFC Bank, collectively hold deposits of Rs 440.42 crore.

The development coincided with proceedings before the Calcutta High Court, where HDFC Bank submitted a sealed report disclosing the corpus held in the accounts, in compliance with the court's directions. The court did not open the report and adjourned the matter until Thursday.

The agency's action follows searches conducted on Tuesday at five locations in Kolkata, including the premises of Carewell Aviation India Pvt. Ltd., a private charter and aviation services company.

According to the ED, the investigation stems from an FIR registered by the Bidhannagar Cyber Police alleging dishonest financial transactions, unlawful collection of funds and the routing of suspected proceeds through bank accounts linked to the TMC.

In its preliminary findings, the agency alleged that nearly Rs 160 crore was transferred from the party's bank accounts to Carewell Aviation and an associated entity between April 2023 and June 2026.

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The ED further alleged that Carewell Aviation transferred Rs 82.96 crore to another newly incorporated related entity, which was used towards the purchase of an Embraer Legacy 600 aircraft and an Agusta 109 GrandNew helicopter. According to the agency, a total of about Rs 112 crore was spent on acquiring the two aircraft.

The agency also claimed that an unsecured loan of USD 1.7 million was arranged in 2023 from a Cayman Islands-based entity to finance the helicopter purchase.

According to the ED, the aircraft and helicopter were subsequently leased to the TMC despite allegedly being acquired using funds originating from the party's accounts. It alleged that substantial payments were later made under the guise of aircraft usage and said the arrangement is being examined to determine the ultimate beneficiaries of the transactions.

The agency's allegations have not been independently verified, and no charges have been proven in court.

Last month, Kolkata Police froze debit operations in the same three bank accounts after complaints were filed by rebel TMC MLAs seeking an investigation into the source of the funds amid an internal dispute over control of the party's finances.

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There was no immediate response from the TMC on the ED's action. A response from Carewell Aviation India Pvt. Ltd. was also awaited.

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