Congress Party in India Faces Freeze on Bank Accounts

Post by: Dr. Amrinder Pal Singh

_{Photo: EPA}

India's main opposition party, the Indian National Congress, disclosed on Friday that its bank accounts had been frozen by authorities, just ahead of the upcoming national elections scheduled before May this year. Ajay Maken, the party's spokesperson and treasurer, asserted during a press conference that the federal income tax department had demanded 2.1 billion rupees ($25 million) and subsequently frozen not only the party's accounts but also those of its youth wing.

The tax dispute in question dates back to the fiscal year 2018-19. While the accounts were temporarily unfrozen following an appeal by the party, Maken revealed that this action was conditional upon maintaining a balance of 1.1 billion rupees.

Maken strongly alleged that the move was politically motivated, especially given the proximity to the impending national elections. He expressed deep concern, stating, "Democracy does not exist anymore in our country. It is just a one-party rule, one-party democracy in our country." Maken emphasized that the freezing of the principal opposition party's accounts two weeks before the election announcement was a troubling blow to the democratic process.

India's elections are renowned as among the costliest globally, marked by extravagant rallies, events, social media campaigns, and widespread advertising by political parties. The Indian National Congress has accused Prime Minister Narendra Modi's government of transforming the country's democracy into an autocracy, citing the alleged use of federal institutions such as the Income Tax Department and the Enforcement Directorate to target opposition parties.

This development follows the Supreme Court's recent decision to eliminate the electoral bonds system, which allowed political parties to receive funds anonymously. The Congress Party contends that the Modi government disproportionately benefited from this scheme, receiving a substantial portion of the funds.

Maken highlighted that the frozen accounts would impact the party's political activities, stressing that the funds received were through crowdfunding, distinguishing it from corporate or bond money. The Congress Party has appealed to the income tax appellate tribunal, a quasi-judicial body, seeking legal action against the account freeze.

Reacting to the freeze, members of the party's youth wing staged protests in Delhi, burning effigies of Prime Minister Modi and expressing their dissent against the government. Many protesters were subsequently detained by the police

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