Frozen CPM bank account: Income Tax department withholds Rs 1 cr, seeks clarity on source

Thrissur: The Income Tax Department on Tuesday reportedly withheld Rs 1 crore from MM Varghese, the CPM Thrissur District Secretary.

The funds were intended for deposit at the Bank of India branch here. 

Earlier, CPM withdrew Rs 1 crore from the Bank of India's MG Road branch ahead of the elections. Subsequently, this account was frozen over some discrepancies. The latest twist came when MM Varghese attempted to deposit the sum at the branch, only for bank authorities to promptly notify the Income Tax Department.

While MM Varghese provided a statement regarding the money, the primary concern of Income Tax Department employees revolves around the source of the funds. However, no further details regarding their response have been disclosed. The funds remain temporarily held in the bank.