High Court’s reply to Vivo: Deposit 950 crores to operate accounts - OpEd Moped
Vivo: The Delhi High court on Wednesday allowed Vivo Mobile to operate its bank accounts subject to furnishing a bank guarantee of Rs. 950 crores.
The company has challenged the freezing of its bank accounts by the Enforcement Directorate (ED). The court has also sought a response from the ED to the petition.
The bench allowed Vivo to operate its bank accounts by furnishing a bank guarantee of Rs. 950 crores and to maintain the balance of Rs. 251 crores already lying therein. Besides, the company will provide details of their remittances to the ED.
The back story
Last week, Chinese mobile manufacturer Vivo moved a plea in the Delhi High Court challenging the freezing of its various bank accounts by the Enforcement Directorate (ED). ED under the Prevention of Money Laundering Act (PMLA), 2002 has booked Vivo and carried out raids across Vivo centres.
ED’s statement on Vivo’s money laundering probe
Earlier the Enforcement Directorate (ED) has blocked 119 bank accounts linked to Vivo’s India business which were holding ₹ 465 crore, ₹ 73 lakh cash and 2 kg gold bars, as part of a probe into alleged money laundering by the company.
The ED revealed the information after it carried out searches at 48 locations spanning across the country belonging to Vivo Mobiles India Private Limited and its 23 associated companies such as GPICPL.
The Delhi High Court on Friday had asked the ED to decide on Vivo India (petitioner) representation seeking permission to operate its bank accounts which were recently frozen in connection with a money laundering case.
With inputs from sources
Vivo moves to High Court asking to lift ban on account freeze
