NEW DELHI: India’s main opposition Congress party said on Friday its bank accounts had been frozen over a 2.1 billion rupee ($25.3 million) income tax demand in connection with a dispute, months before national elections.
The party called the action “a deep assault on India’s democracy”, adding that an income tax tribunal had however allowed the party to partially operate its accounts until Feb. 21, when it would hear the case.
Congress treasurer Ajay Maken told reporters the party had filed a complaint against the tax department after it told banks to freeze funds in its accounts.
“We got information two days back that cheques being issued by us were not being honoured by banks ... We don’t have money to pay electricity bills, to pay salaries to our employees,” Maken said.
Maken said the frozen accounts included funds collected by the party through crowd-funding and membership drives, adding that the dispute with the tax department was in connection with an issue dating back to 2018-19.
The income tax department did not respond to calls and messages seeking comment.
A source familiar with the matter said Congress was supposed to pay 1.05 billion rupees in taxes in the case and following payment delays, this amount had risen to 1.15 billion rupees and therefore an equal amount in the party’s accounts had been frozen.
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