'Financial terrorism': Congress slams government in tax, bank account row
The Congress has accused the Prime Minister Narendra Modi-led government of "financial terrorism" and attempting to "cripple" its primary opposition just months before the general election. Reports said the Income Tax Department has demanded an "unprecedented" Rs. 210 crore from the party, citing faults in its financial year 2017-18 returns. Addressing a press conference on Thursday, Congress leader Ajay Maken said, "The government knows we are right... we will get our money back...by then, the elections will be over."
Why does this story matter?
Last week, tax officials froze the Congress's main bank accounts, but these were quickly unfrozen by the Income Tax Appellate Tribunal (ITAT), which began hearing the case on Wednesday. Maken alleged on Wednesday that tax officials withdrew Rs. 65 crore from the accounts operated by the main party, as well as the student and youth wings, despite the pending appeal at the ITAT. Amid the row, the Congress has accused the the Centre of "murdering democracy."
'Proceedings initiated months before general elections'
According to the Congress, the I-T Department raised concerns about its tax returns for 2017-18. Officials stated that a portion of total voluntary contributions for the period exceeded the Rs. 2,000 cash limit. The Congress questioned the rationale behind the total demand of "Rs.210 crore for a violation (even if true) of just Rs. 4.49 lakhs?" The party highlighted the proceedings were initiated just weeks before the dates for the general elections will be announced.
Centre pressured bankers to transfer money: Congress
Expanding on Wednesday's claim, the Congress said that the Centre had pressured their party's bankers to transfer around Rs. 65.89 crore from their deposits. The funds were withdrawn from State Bank of India accounts managed by the Youth Congress, National Students' Union of India, and three others operated by the Congress. "Unlike the BJP, this is money contributed by workers of the Congress, the membership fees of the Indian Youth Congress, and NSUI students," the party said.
Centre rattled by Gandhi's yatra: Ramesh
At Thursday's press meeting, Congress leader Jairam Ramesh hit out at the Centre over the "financial terrorism." He alleged that the government was engaging in such tactics as it was rattled by Rahul Gandhi's "Bharat Jodo Nyay Yatra" and the "Delhi Chalo" farmers' protest. "This type of low-level attack has never happened in history. We will fight it out," he added.
Watch: Congress's press meet here
Funding for political parties becomes central election issue
The issue of political party funding has become a focal point in this election, after the Supreme Court struck down electoral bonds on grounds of violating citizens' right to information. The Congress and other opposition parties welcomed the verdict, which abolished a scheme that had primarily benefitted the Bharatiya Janata Party. Between 2016 and 2022, 28,030 bonds worth Rs. 16,437.63 crore were sold, with the BJP receiving over Rs. 10,000 crore and the Congress less than Rs. 1,600, NDTV reported.
