Summarize

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The Congress party's bank accounts, previously frozen due to a tax demand of Rs. 210 crore by the I-T Department, are now operational.
The freeze, which affected four accounts, had halted party activities and payments, including staff salaries and electricity bills.
The party has initiated legal action, with further inquiry pending, and raised suspicions about the timing of the freeze, calling it a blow to the democratic process.

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Congress spokesperson Ajay Maken has described the move as a blow to the democratic process

In relief for Congress, 'frozen' bank accounts now working

By Tanya Shrivastava

Feb 16, 2024

01:02 pm

What's the story

The Congress on Friday said that the party's bank accounts, including those of the Youth Congress, were frozen by the Income Tax (I-T) department. Just an hour after the Congress's announcement, the accounts were unfrozen after the party filed an appeal with the Income Tax Appellate Tribunal (ITAT) in Delhi. Party chief Mallikarjun Kharge called the move a "deep blow to democracy."

Statement

Principal opposition party subjugated: Maken

Earlier in the day, Congress spokesperson Ajay Maken described the move as a "blow to the democratic process." In his statement, Maken had said, "Democracy doesn't exist; this is like a one-rule party...the principal opposition party has been subjugated." According to NDTV, the freeze resulted from a tax demand of Rs. 210 crore raised by the I-T Department.

Twitter Post

Read: Kharge's statement here

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 !

The UNCONSTITUTIONAL money collected by the BJP would be utilised by them…

— Mallikarjun Kharge (@kharge) February 16, 2024

4 accounts affected

Congress initiated legal action

Congress's lawyer Vivek Tankha said that four accounts had been affected by the move. According to Maken, the party learned about the freezing of its accounts on Thursday. The leader informed that the party had moved the ITAT in response to the action. Further inquiry is pending, reports said.

Congress hits back

Timing of freeze raises suspicions: Congress leader

In his earlier statement, Maken said that although the party submitted its accounts 45 days late in the 2018-19 election year, freezing the accounts is an extreme measure. He highlighted that there were cases and precedents where such actions were not taken. The Congress leader had said that the freeze's timing raised suspicions about the motives behind the actions of the I-T Department.

Congress activities affected

Banks instructed not to accept or honor Congress's checks

According to reports, banks had been instructed not to accept or honor Congress's checks, with the frozen funds to be submitted to the I-T Department. "Right now, we have no money to spend. Electricity bills, staff salaries, our Nyay yatra, everything is impacted," Maken had said earlier. "We have only one PAN, and the four accounts are all linked," he had added.