Rahul Gandhi, a Congress MP, alleged on Thursday that all of the party's accounts have been stopped and that it cannot campaign ahead of the Lok Sabha elections. Income Tax officials are closely investigating data obtained during searches in states including Madhya Pradesh, Karnataka, Andhra Pradesh, and Gujarat after discovering substantial cash contributions to the Congress party, according to a report. The tax agency plans to complete the reassessment of accounts for fiscal years 2013-14 to 2019-20 by March 31, 2024.

The decision, which is based on evidence gathered during raids on Megha Engineering, some organizations associated with Karnataka Deputy Chief Minister D K Shivakumar, and other persons allegedly tied to a former Madhya Pradesh Chief Minister, has been challenged by Congress in the Delhi High Court. The issue was scheduled for a hearing on Tuesday, but the HC has deferred its decision for now.

"We have told the court that we are in advanced stages of completing the assessment and we are awaiting the order, which is expected any day," a person familiar with the matter told The Times of India.

According to the source, some of the searches turned up linkages to cash transfers totaling more than Rs 100 crore. While tax officials refused to provide an estimate of the magnitude of the potential demand, the officers stated that the tax department was investigating the finances of state units and other wings under the Indian National Congress umbrella.

The officials intimated that the grand old party may lose the seven-year tax exemption afforded to political parties if the reassessment reveals that it received individual contributions surpassing Rs 20,000, the law's threshold. The breach of the restriction might result in penalties.

According to reports, Congress has contended that the 'panchnama' and other data were not disclosed with them. However, tax authorities said that more than a dozen notifications were issued in instances that began a few years ago.

The Congress alleged in February that the Income Tax Department had stopped its bank accounts due to a disagreement over a Rs 210 crore tax demand. However, there has been no formal announcement from the I.T. department.

"This is not the freezing of Congress party's bank accounts, this is the freezing of Indian democracy," Rahul Gandhi stated in a statement. "As the largest opposition party, we are powerless to take any action; we cannot schedule ads or send our officials anyplace. "This is an assault on democracy."

He went on to say that the party's money accounts had been frozen, therefore it was unable to conduct campaigns. "Twenty percent of India votes for us, yet we can't afford to spend Rs two for anything. We are unable to work on campaigns, help our employees, or support our candidates. This was done two months before the election campaign," he explained.