Account restored but 115 crore should be maintained; Congress with major setback before elections

NEW DELHI: The Income Tax Department has frozen the bank accounts of the Congress and the Youth Congress for tax arrears from four previous financial years. Even though the account has been restored by the Appellate Tribunal, a balance of Rs 115 crore is to be maintained till the investigation is completed.

The party says that such a huge amount is not there in the account. If money cannot be spent, Rahul's Bharat Jodo Nyay Yatra, salary distribution to employees, electricity bills and other expenses will be affected. The tribunal will hear the complaint again on Wednesday.

The party alleged that the move was politically motivated to disrupt the election preparations. The move against the Congress comes after the Supreme Court's election bonds freeze becoming a huge setback for the central government.

In 2018-19, the party was 45 days late in submitting the account information. Accounts were frozen with a fine of Rs 210 crore, citing non-payment of tax in proportion to the expenditure of Rs 199 crore in the 2019 elections.

Crowdfunding amount in the account

The party has four accounts linked to one PAN card. AICC Treasurer Ajay Maken said that he came to know about the freeze on Thursday. Banks were also instructed not to accept Congress cheques. Maken said that the amount in the account was collected by way of crowdfunding from people and others ahead of the elections. 25 crores had reached the Congress accounts through online funding.

Modi government freezing the accounts of the country's largest opposition party just ahead of Lok Sabha elections is a major blow to democracy - Mallikarjun Kharge, Congress President