Delhi HC allows Vivo entities to operate frozen bank accounts on conditions
Published By : Prameya News Bureau | August 09, 2022 IST
Share
New Delhi, Aug 8 The Delhi High Court on Monday permitted 14 entities of Chinese smartphone maker Vivo to operate their frozen bank accounts on a condition of maintaining bank accounts' balances, which were shown during the Enforcement Directorate (ED) search in a money laundering probe. Justice Yashwant Varma also directed the companies to provide the complete details in this regard to the ED in every 48 hours. The court said the petitioner companies maintaining a balance as was available on the day of freezing the individual bank accounts, the debit freeze order of ED can be modified. The bench was hearing the plea of the 14 companies -- Rui Chuang Technologies Pvt Ltd, Unimay Electronic Pvt Ltd, Technology Transforms Pvt Ltd, Junwei Electronic Pvt Ltd, Yingjia Communication Pvt Ltd, Joinmay Electronic Pvt Ltd, Huijin Electronic India Pvt Ltd, Haijin Trade India Pvt Ltd, Fangs Technology Pvt Ltd, Iqonic Mobile Pvt Ltd, Aohua Mobile India Pvt Ltd, Joinmay Electronics Pvt Ltd, Hisoa Electronic Pvt Ltd and Haicheng Mobile Pvt Ltd. On July 13, the Delhi High Court had allowed Vivo to operate its bank accounts on the condition of furnishing a bank guarantee of Rs 950 crore and maintaining Rs 250 crore in its accounts. Vivo was knocking the doors of high court following the ED searches on the premises of Chinese companies, including Vivo, at 44 locations across 22 states. The probe agency argued that Vivo had remitted 50 per cent of its total sales, i.e., Rs 62,476 crore, to China. It earned nearly Rs 1.20 lakh crore in the last two years but remitted nearly half of it to avoid paying taxes, the ED alleged. This caused huge losses to the Indian incorporated companies, the ED said. In its plea, Vivo said the orders against it are in stark contravention to the mandate of Section 17 of the Prevention of Money Laundering Act (PMLA), as the same do not entail any reasons for freezing, let alone cogent "reasons to believe" as to why the bank account should be frozen. It is a generic order passed mechanically without any application of mind, the plea said. It also said the frozen accounts are used for the payment of salaries and statutory dues, opening of letter of credits for the petitioner's operations, and for all kinds of expenses necessary for the day-to-day functioning of the petitioner.
News7 Is Now On WhatsApp Join And Get Latest News Updates Delivered To You Via WhatsApp
You Might Also Like
More From Related News
Police seize 'car copter' made with 'jugaad' in UP's Ambedkar Nagar
Spring disappears in many parts of India: Scientists
Top cops of Odisha, Bengal, Bihar & Jharkhand discuss security arrangements for polls
Satyendar Jain returns to Tihar Jail as SC refuses bail
PM Modi accorded rousing reception in Coimbatore
SC refuses out-of-turn hearing on industrial associations' pleas against disclosure of alpha-numeric numbers of Electoral Bonds
Gangster accused of killing constable gunned down in police encounter in Punjab
Centre establishes tribunal to assess legality of ban on Muslim Conference JK faction
Former IPS officer Praveen Kumar joins BRS
US Defence Secretary lauds Indian Navy's role in anti-piracy operations
Make complete disclosure of all details on electoral bonds: SC to SBI
Dwarika Mutt Shankaracharya in Odisha’s Rourkela
NDA finalises seat-sharing in Bihar; BJP to contest 17 seats, JD(U) 16
'Look forward to working together': PM Modi congratulates Putin on re-election as President
EC removes West Bengal's acting DGP Rajeev Kumar, appoints Vivek Sahay to post
Gujarat University hostel attack leads to three more arrests; relocation of international students on the cards
Death toll in Kolkata building collapse rises to five; prompter held
ECI shakes up administrative posts ahead of LS polls
Govt plans to roll out e-buses in all cities, some long routes: Gadkari
PM Modi counters Rahul on ‘Shakti’, says ‘I am a devotee of Bharat Mata’