Frozen bank accounts of congress now working, Ajay Maken describes move to freeze accounts as disturbing blow to democratic process

NEW DELHI: The bank accounts of the Congress party which were frozen by the Income Tax department, weeks ahead of the announcement of dates for the elections, have been unfrozen. Just after the Congress made the announcement and filed an appeal with the Income Tax Appellate Tribunal (ITAT) in Delhi, the accounts were unfrozen.

Congress treasurer Ajay Maken said, ‘We got information yesterday that banks are not honouring the cheque we are issuing. On further investigation, we got to know that the Youth Congress bank accounts have been frozen. The accounts of the Congress party have also been seized. Income tax asked for Rs 210 crore recovery from Youth Congress and Congress party. The crowdfunding money in our accounts has been frozen. Just two weeks before elections when the opposition's accounts are frozen, it is equivalent to freezing the democracy...’

Ajay Maken said the money collected through crowdfunding is in the account and the opposition party's bank account has been frozen just weeks before the election. He also accused that this is tantamount to freezing democracy.

Meantime, the Supreme Court had stated yesterday that the Electoral Bond system, which provides donations to political parties, should be cancelled. The Supreme Court has ordered to stop the distribution of electoral bonds. The court verdict pointed out that keeping information secret is unconstitutional and violates the citizen's right to information.

What is electoral bond?
An electoral bond is a bond that allows political parties to raise funds through means such as bonds or promissory notes that can be purchased by companies and individuals. Bonds are issued through State Bank of India (SBI).

Bonds are sold in denominations of 1000, 10,000, 1 lakh, 10 lakh and Rs one crore. Contributions made by corporates and foreign entities under this scheme are 100 percent tax exempt. Apart from this, the information of the recipients of the bonds is kept confidential. The political party receiving the money will also keep the identity of the person paying the money confidentially.