Vivo gets partial relief from HC, can operate ED-fozen accounts after Rs 950 crore bank guarantee | India News
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NEW DELHI: Chinese smartphone maker Vivo got limited relief on Wednesday from the Delhi high court, which allowed it to operate bank accounts frozen by the Enforcement Directorate in connection with a money-laundering probe.
The HC, however, made the relief conditional on Vivo furnishing a bank guarantee of Rs 950 crore within a week with the agency. Justice Yashwant Varma also directed the company to give the ED details about its remittances after the agency claimed that the proceeds of crime have been quantified to Rs 1,200 crore till now. The HC also asked the company to maintain a balance of Rs 251 crore in its bank accounts as this was the money lying in them at the time of freezing of the accounts, and the amount shall not be used till further orders.
The court granted one week to the ED to file its response to the petition seeking de-freezing of all accounts and listed the matter for further hearing on July 28. Besides seeking quashing of the freezing order, Vivo has sought permission to deal with its frozen bank accounts for making payments towards certain liabilities. The ED’s counsel informed the court that the representation by Vivo was general in nature, which is why the agency asked the company to give some more documents and that these were made available to the agency on Tuesday in a pen drive containing 5GB of data. He said the agency needs at least one week to go through the data in the pen drive. It said its searches have been completed and the relevant material has been sent to the adjudicating authority.
Vivo’s counsel contended that the ED can only seize what they have discovered in their search operations and not the company’s bank accounts, which were already disclosed to all the authorities. He added that the freezing order has robbed the company of its financial autonomy. Vivo’s counsel had earlier said that freezing of the bank accounts had brought the functioning of the petitioner to a standstill and that there are crores of rupees that have to be paid as statutory dues apart from the payment of salaries.
The HC, however, made the relief conditional on Vivo furnishing a bank guarantee of Rs 950 crore within a week with the agency. Justice Yashwant Varma also directed the company to give the ED details about its remittances after the agency claimed that the proceeds of crime have been quantified to Rs 1,200 crore till now. The HC also asked the company to maintain a balance of Rs 251 crore in its bank accounts as this was the money lying in them at the time of freezing of the accounts, and the amount shall not be used till further orders.
The court granted one week to the ED to file its response to the petition seeking de-freezing of all accounts and listed the matter for further hearing on July 28. Besides seeking quashing of the freezing order, Vivo has sought permission to deal with its frozen bank accounts for making payments towards certain liabilities. The ED’s counsel informed the court that the representation by Vivo was general in nature, which is why the agency asked the company to give some more documents and that these were made available to the agency on Tuesday in a pen drive containing 5GB of data. He said the agency needs at least one week to go through the data in the pen drive. It said its searches have been completed and the relevant material has been sent to the adjudicating authority.
Vivo’s counsel contended that the ED can only seize what they have discovered in their search operations and not the company’s bank accounts, which were already disclosed to all the authorities. He added that the freezing order has robbed the company of its financial autonomy. Vivo’s counsel had earlier said that freezing of the bank accounts had brought the functioning of the petitioner to a standstill and that there are crores of rupees that have to be paid as statutory dues apart from the payment of salaries.
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