Congress, India’s Main Opposition Party, Faces Zero Funds Crisis

In a startling revelation, India’s principal opposition party, the Congress party, disclosed that its bank accounts, alongside those belonging to its youth wing, have been frozen, precipitating a severe financial crisis.

Addressing the media, Congress Treasurer Ajay Maken expressed grave concern over the party’s financial plight, citing the inability to cover essential expenses such as electricity bills and employee salaries. Maken underscored the far-reaching implications of the frozen accounts, noting that it would adversely impact not only ongoing political activities but also future campaigns, including the highly anticipated Nyay Yatra. All the accounts of Congress have been frozen by Income Tax dept. 210 Cr penalty has been imposed on INC. Congress has no money to pay light bills, rent and employees salary.

“Right now we don’t have any money to spend, to pay electricity bills, to pay salaries to our employees. Everything will be impacted, not only Nyay Yatra but all political activities will be impacted”-Ajay Maken

The freeze on accounts arrives amidst mounting pressure from the Income Tax department, which has demanded a staggering sum of Rs 210 crore in recovery from both the Congress party and its youth wing. This financial setback comes at a critical juncture, mere weeks ahead of the forthcoming Lok Sabha elections, raising apprehensions about the party’s capacity to finance election campaigns effectively.

The timing of this development is particularly significant, coinciding with a recent landmark Supreme Court ruling that declared the Centre’s electoral bonds scheme unconstitutional. In response, the court-mandated the disclosure of donors, amounts, and recipients of such bonds by March 13, further complicating the financial landscape for political parties.

Ajay Maken’s candid remarks shed light on the gravity of the situation, highlighting the formidable challenges confronting the Congress party as it navigates a treacherous financial terrain in the lead-up to crucial electoral contests.

Net bank balance of political parties

BJP: ₹5442 Cr

INC: ₹162 Cr

Key points

1. The main opposition party in India, the Congress party, has revealed that its bank accounts, along with those of its youth wing, have been frozen, leading to a severe cash crunch.
2. Congress Treasurer Ajay Maken highlighted the financial predicament during a press conference, expressing concern over the party’s inability to meet essential expenses such as electricity bills and employee salaries.
3. Maken emphasized that the freeze on accounts will significantly impact not only ongoing political activities but also future campaigns, including the Nyay Yatra.
4. The freeze on accounts comes amidst a demand from the Income Tax department for a staggering Rs 210 crore in recovery from both the Congress party and its youth wing.
5. The timing of this financial setback is particularly crucial as it occurs just weeks before the upcoming Lok Sabha elections, raising concerns about the party’s ability to fund election campaigns effectively.
6. The development follows a recent Supreme Court ruling that deemed the Centre’s electoral bonds scheme unconstitutional, prompting orders for the disclosure of donors, amounts, and recipients of such bonds by March 13.
7. Congress Treasurer Ajay Maken’s statement underscores the gravity of the situation, signaling significant challenges ahead for the party in navigating the financial landscape and sustaining its political operations.