The Congress party revealed on Friday that its bank accounts, along with those of its youth wing, were subjected to freezing by the Income Tax Department. However, a reprieve came when the Income Tax Appellate Tribunal's bench in New Delhi granted permission for the party to continue operating its 'frozen' bank accounts, albeit with the condition of maintaining a minimum 'lien' amount.
This development transpired shortly after Ajay Maken, the Congress treasurer, brought to light the freezing of four bank accounts. Maken disclosed that the Income Tax Department sought to recover a substantial sum of Rs 210 crore from the Congress and the Youth Congress due to a delayed Income Tax return filing for the fiscal year 2018-19, an issue spanning five financial years.
Despite the stringent actions taken, Maken dismissed the rationale behind the freeze as "laughable" and further alleged that the frozen accounts contained funds sourced from a crowdfunding initiative by the party. He emphasized that the entirety of the funds originated from digital transactions, with the majority of donations received via the Unified Payments Interface (UPI) being under Rs 100.
This revelation regarding the crowdfunding initiative holds significance, particularly in light of Maken's assertion that the freezing of the Opposition's accounts equates to stifling democracy. The 'Donate for Desh' campaign, launched by the Congress Party in December 2023 ahead of the 2024 Lok Sabha elections, aimed at garnering public support and resources. The campaign witnessed substantial traction, with over Rs 3 crore raised within 48 hours of its inception and a total collection of Rs 20 crore reported by late January 2024.
The crowdfunding initiative, now renamed 'Donate for Nyay,' has continued to attract donations, with a notable contribution from donors across various states. The initiative, inspired by the 'Tilak Swaraj Fund' of 1920-21 championed by Mahatma Gandhi, underscores the spirit of collective responsibility and civic engagement.
However, amidst the crowdfunding success, the party's financial status remains a subject of interest. While the Congress had Rs 162 crore in its possession as of March 2023, comprising cash reserves, current and savings account balances, and fixed deposits, the current status of its bank balance remains ambiguous. Ajay Maken's statement regarding a mandated minimum of Rs 115 crore to be maintained in the accounts suggests a potential cash reserve exceeding Rs 25 crore but falling below the frozen amount of Rs 115 crore, signaling a nuanced financial scenario for the Congress party.
