Delhi High Court allows Vivo India to de-freeze bank accounts

Delhi High Court has allowed the de-freezing of bank accounts of Vivo Mobile India Private limited. This comes days after the Enforcement Directorate claimed the company’s involvement in money laundering case. The relief has been granted with certain conditions that are to be followed by Vivo India. The condition is that the petitioners will have to maintain the amount in question in the bank account on the day of freezing.

The court asked the ED to permit the company 48 hours to operate their bank accounts. According to a report by ANI, the petitioners’ bank accounts were put on a debit freeze since July 6 this year by the ED in connection with a money laundering case connected with Vivo Mobiles.

The company’s counsel claimed that due to the freezing of bank accounts the companies were not able to meet their expenses including rentals, salaries etc.

According to the ED, Vivo India’s nearly 23 associated firms such as Grand Prospect International Communication Pvt Ltd (GPICPL) transferred huge amounts to the firm and out of the total sale proceeds of Rs 1,25,185 crore, it remitted Rs 62,476 crore, almost 50 per cent of the turnover out of India, mainly to China.

“These companies are found to have transferred huge amounts of funds to Vivo India. Further, out of the total sale proceeds of Rs 1,25,185 crores, Vivo India remitted Rs 62,476 crores almost 50 per cent of the turnover out of India, mainly to China,” the ED informed.

The ED said this after it carried out searches at 48 locations across the country belonging to Vivo Mobiles India Private Limited and its 23 associated companies such as GPICPL.

Earlier this month, Vivo Mobile India Private Limited was accused of evading customs duty worth Rs 2,217 crore by the Directorate of Revenue Intelligence (DRI).

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