India's leading opposition party, the Congress, revealed on Friday that it has been slapped with an additional tax demand of 18.2 billion rupees ($218 million), branding it as a ploy by the tax authorities to destabilize its finances just weeks before the national parliamentary election. Congress Treasurer, Ajay Maken, condemned the move as "tax terrorism," vowing to contest the demand in court, although the impending election leaves little room for timely resolution.

With India gearing up for a crucial election spread across seven phases, Prime Minister Narendra Modi's anticipated victory for a third consecutive term looms large. Despite confidence in legal recourse, Maken expressed concerns over the prolonged legal process, potentially overshadowing the electoral contest.

While the Income Tax Department remained silent on the matter due to a public holiday, a source familiar with the dispute disclosed that the tax assessments against Congress were revisited following searches in April 2019. The tax department justified its actions citing violations of tax exemption laws and court rulings in its favor, further exacerbating tensions between the Congress and Modi's Bharatiya Janata Party (BJP). Amid mounting financial pressure, Congress faces an uphill battle as it strives to regain political prominence in the face of BJP's dominance since 2014.