The Calcutta High Court on Monday reserved its verdict on a plea filed by the All India Trinamool Congress (TMC) challenging the Enforcement Directorate's (ED) decision to freeze three of its bank accounts containing around ₹440 crore.

The matter came up before Justice Krishna Rao, who heard submissions from both sides before reserving orders.

The ED froze the accounts as part of a money laundering investigation under the Prevention of Money Laundering Act (PMLA). The probe concerns the alleged transfer of funds to Carewell Aviation India and an associated entity between April 2023 and June 2026 for the purported purchase of an aircraft and a helicopter.

Appearing for the TMC, Senior Advocate Abhishek Manu Singhvi argued that the ED's action was a "colourable exercise" and was timed to frustrate relief that the party was likely to receive in a separate case.

Singhvi contended that the central agency froze the accounts despite being aware that a coordinate Bench of the High Court was on the verge of ordering the de-freezing of the same accounts in proceedings arising from a West Bengal Police case.

"This is a completely colourable exercise. When agencies, government and independent investigations become blurred, this happens," Singhvi submitted.

Earlier, the High Court had granted relief to the TMC after the West Bengal Police froze its accounts based on a complaint by rebel TMC MLA Biswanath Das alleging misuse of party funds. However, despite that relief, the party remained unable to access the funds because the ED separately froze the accounts, prompting the present petition.

Opposing the plea, Additional Solicitor General SV Raju argued that the petition itself was not maintainable, pointing to a civil court order restraining the Mamata Banerjee-led faction from acting on behalf of the party.

"Therefore on this ground alone the petition goes," Raju submitted.

Responding to the objection, Singhvi argued that the civil court's order had been passed ex parte and accused government agencies of being overly eager to recognise the rival faction within the party.

He further argued that freezing the bank accounts of a recognised political party had serious implications for democracy.

"Never before has a recognized political party's accounts, nine of them, been frozen in this manner. They froze this while opposing faction of the TMC is yet to be recognized either as TMC or symbol-holding party," Singhvi told the Court.

He urged the Court to consider the broader constitutional implications, arguing that denying a political party access to its funds effectively undermines democratic functioning.

"Please look at the larger picture. Please don't allow this decimation and distortion of democracy in this manner. You may have won, I may have lost; the difference was 5 percent, that doesn't mean my right to exist is obliterated," Singhvi argued.

The senior counsel also pointed out that the rebel MLAs who had complained of fund misuse had themselves used money from the same accounts while contesting elections as TMC candidates.

Addressing the ED's allegations regarding aircraft-related payments, Singhvi maintained that political parties routinely use chartered flights during election campaigns. He submitted that all payments were made through legitimate banking channels, including cheques, under valid charter agreements.

"Perhaps, the party which runs the ED uses hundred times charter flights compared to what much poorer country cousins can use," he remarked.

After hearing detailed arguments from both sides, the High Court reserved its order on the TMC's plea seeking permission to operate the frozen bank accounts.