The Income Tax Department dealt a blow to Jaihind TV, the mouthpiece of the Congress party in Kerala, by freezing its bank accounts on February 17th, Saturday. The move, attributed to a purported mismatch in filing outstanding tax demands, has sparked allegations of political vendetta. BS Shiju, the Managing Director of Jaihind TV, told TNM that the freezing of accounts could be because of an investment made by Congress leader and Karnataka Deputy Chief Minister DK Shivakumar and that the IT department action was vindictive.
BS Shiju told TNM, "The freezing of the bank accounts is related to a seven-year-old case concerning service tax arrears, which is currently being litigated in the High Court. Jai Hind TV's bank accounts were frozen, similar to those of All India Congress Committee and Youth Congress. Initially, HDFC Bank froze the accounts, followed by ICICI Bank." Despite possessing ample funds, critical payments failed due to the account freeze, prompting the channel to seek clarification from the banks.
Bank officials cited directives from Union government authorities as the rationale behind the freeze but provided scant details. Shiju explained, "Subsequently, we wrote a letter demanding the reason behind the action. Eventually, HDFC Bank provided a copy of the letter from the CGST department, which was cited as the reason for the freeze. ICICI Bank officials informed us that they were instructed not to provide a copy."
The freezing of accounts, allegedly stemming from a seven-year-old case concerning service tax arrears under litigation in the High Court, occurred without prior warning. Shiju expressed dismay, stating, "This lack of consideration for the legal proceedings exacerbates the situation, causing significant disruption to the channel's day-to-day operations. This abrupt action is indeed unfortunate and has plunged the channel into a state of crisis."
Highlighting a potential motive behind the move, Shiju referenced a notice received on December 22, 2023, seeking investment details from Karnataka Deputy Chief Minister DK Shivakumar and his family members in Jaihind TV. The channel says that it has cooperated with investigating agencies regarding the notice but subsequently was served with numerous notices from various Union government departments and agencies.
Shiju alleged, "It is evident that this is a clear case of political vendetta against the Indian National Congress and DK Shivakumar."
"We were the only channel that aired details of Bharat Nyay Yatra, so this might also be a step to hinder that," Shiju added.
On February 16, Congress leader Ajay Maken told the media that the party's bank accounts were frozen. "The accounts of the Congress party have also been seized. Income tax asked for Rs 210 crore recovery from Youth Congress and Congress party. The money received by the party through crowdfunding has also been frozen. Just two weeks before elections when the opposition's accounts are frozen, it is equivalent to freezing democracy," Maken said.