Indian General Election 2024: Congress Says Bank Accounts Frozen, ‘No Democracy in India’

‘We Are Not Able to Pay Rs 2 for Anything’

Newsreel Asia Insight #168
March 22, 2024

The Congress Party has accused the government of freezing its bank accounts, hindering its campaign efforts for the upcoming Lok Sabha elections. The party says this move undermines democracy in the country.

Rahul Gandhi, a Congress Member of Parliament (MP), stated at a press conference on March 21 that the freezing of the party’s accounts is an attack on Indian democracy, not just the Congress. He emphasised that the party is now unable to fund its campaign activities, including booking advertisements and mobilising leaders.

“Twenty percent of India votes for us, and we are not able to pay Rs 2 for anything. We can do no campaign work, we cannot support our workers, we cannot support our candidates... This has been done two months before the election campaign,” India Today quoted Rahul Gandhi as saying.

Gandhi criticised the central government for what he termed a “criminal action” against the Congress, asserting that it reflects the absence of democracy in India.

During a press conference, former Congress president Sonia Gandhi and current party president Mallikarjun Kharge echoed these sentiments.

“The issue we are taking up today is extremely serious. The issue affects not just the Indian National Congress but the democracy itself. A systematic effort is underway by the Prime Minister to cripple the Indian National Congress financially,” Hindustan Times quoted Sonia Gandhi as saying.

Kharge highlighted the unfair advantage this gives to the ruling Bharatiya Janata Party (BJP), especially in light of the electoral bonds scheme. “It shouldn’t be the case that the one in the power should have the authority over media and control over IT, ED (Enforcement Directorate), Election Commission and other autonomous bodies,” he was quoted as saying.

The Congress’s financial woes began when the Income Tax department seized its four main bank accounts over a tax demand of 2.1 billion rupees for the 2018-19 fiscal year. Despite the party’s legal challenges, both the Income Tax Appellate Tribunal and the Delhi High Court upheld the freeze, with the court recently refusing to stay the IT department’s notice.

The party leaders, including Rahul Gandhi, Sonia Gandhi and Kharge, pointed out the timing of the account freeze and the subsequent financial strain it has imposed on the party’s election campaign.

Rahul Gandhi highlighted the broader implications of this move, questioning the silence of the Election Commission and the judiciary. He argued that the financial blockade is part of a larger strategy to dismantle the democratic framework of India, leaving the Congress incapacitated in the electoral race.

The Congress has vowed to fight back legally and publicly, planning to take the issue to the courts and the people. Party treasurer Ajay Maken said the financial crackdown followed a minor discrepancy in cash donations, which the IT department used to justify the disproportionate freezing of assets.

“The reason given is that Rs 14.49 lakh was received in cash (as donations made by our MPs to the Congress party), out of total receipt of Rs 199 crore. This cash component is just 0.07% of the total donations. And the punishment was 106%,” The Wire quoted Maken as saying.

“Look at the timing of freezing our accounts. We received the Rs 199 crore donation in 2017-18, but after seven years, on February 13, 2024, 210.25 crore lien was marked, our bank accounts were virtually sealed, and later, Rs 115.32 crore was forcibly confiscated.”

The Congress said on social media: “All our bank accounts have been frozen. We cannot do our campaign work. We cannot support our workers and candidates. Our leaders cannot travel from one part of the country to the other. We're unable to put out our ads. This is being done two months before the election campaign.”

“This is a criminal action against the Congress party, done by the PM and the Home Minister. It is being orchestrated to cripple us before the elections. There are institutions in the country that are supposed to protect the democratic framework. No court is saying anything, the Election Commission is silent, no other institution is saying anything, and the media is not saying anything.

“There is no democracy in India today. The people of India are being robbed of their Constitution and democratic structure.”