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MUMBAI : The Delhi high court on Wednesday lifted a freeze on Vivo India’s bank accounts ordered by the Enforcement Directorate (ED) last week, in a case of suspected money laundering.
The company was allowed to operate its accounts on the condition that it provide a bank guarantee of ₹950 crore and maintain ₹250 crore in its accounts.
A bench led by Justice Yashwant Varma gave Vivo India seven days to comply, and asked the company to submit details about its bank activities and remittances to the ED.
The matter will be heard further on 28 July.
The high court on Friday directed ED to decide by 13 July on Chinese smartphone maker Vivo’s representation seeking permission to operate its frozen accounts. The court also asked the federal financial crime investigation agency to seek instructions on a plea by Vivo Mobile India Pvt. Ltd’s plea challenging freezing of its nine bank accounts.
The ED last week blocked nearly 119 bank accounts linked to Vivo’s India business and associates that were holding ₹465 crore as part of a probe into alleged money-laundering by the company.
The agency also raided 48 locations of Vivo and 23 related entities this week, alleging that sale proceeds of Vivo India were transferred out of the country to show losses and avoid paying taxes. The ED also claimed to have found fixed deposits of ₹66 crore of Vivo India, 2kg gold bars, and ₹73 lakh in cash.
Vivo had filed a writ petition before the high court, seeking the quashing of ED’s 5 July order freezing the bank accounts under the Prevention of Money Laundering Act, 2002. The company submitted to the court that the agency’s decision will cause “grave injustice” to it, which will also negatively impact its reputation and business operations.
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