By ANI | Updated: 26 July 2022
The Enforcement Directorate has told the Delhi High Court that the investigation has been carried out against Vivo India strictly in accordance with the provisions of PMLA and the offence relates to money laundering which is a heinous economic offence. The financial probe agency, in an affidavit filed in Delhi High Court, opposed the petition filed by the Chinese smartphone manufacturer and said the commercial engagements of the petitioner and its reputation and goodwill are not a relevant consideration during the investigation into the offence of money laundering by the respondent.
The affidavit further stated that the employees of Vivo India, including some Chinese nationals, did not cooperate with the search proceedings and “had tried to abscond, remove and hide digital devices which were retrieved by the search teams”.
The ED told the court that due process of law has been followed while freezing the bank accounts of the petitioner and it cannot be said to be violative of Article 21.
It said Article 19(1)(g) is a freedom granted in respect of a lawful trade, occupation and business and not in respect of a business conducted based on fraud and misrepresentation of identity.
The Delhi High court had recently allowed Vivo Mobile to operate the bank accounts subject to furnishing a bank guarantee of Rs 950 crore. VIVO has challenged the freezing of their bank accounts by the Enforcement Directorate (ED). The court has directed the ED to file a reply on the petition. The matter has been listed on July 28 for further hearing.
The court had allowed Vivo to operate its bank account on furnishing a bank guarantee of Rs 950 crore and to maintain the balance of Rs 251 crore already lying therein.
Besides the company was asked to detail remittances to ED. The court also said that the bank guarantee will be deposited within seven working days. In the meantime, the ED will file its reply.
Senior advocate, who Siddharth Agrawal appeared for Vivo India, submitted that the bank accounts of the company have been “freezed and all the transactions and flow of funds have been freezed”.
The petitioner, he said, is not able to operate the business and that no company can operate without a bank account.
Besides the company was asked to detail remittances to ED. The court also said that the bank guarantee will be deposited within seven working days. In the meantime, the ED will file its reply.
Senior advocate, who Siddharth Agrawal appeared for Vivo India, submitted that the bank accounts of the company have been “freezed and all the transactions and flow of funds have been freezed”.
The petitioner, he said, is not able to operate the business and that no company can operate without a bank account.
