Vivo money laundering case: Delhi High Court allows companies to operate bank accounts

Justice Yashwant Verma, after hearing the arguments of the petitioner’s lawyers and the Enforcement Directorate (ED) granted him relief subject to certain conditions which were to be complied with by the petitioner, including maintaining the amount in the bank account on the day of freezing.

The bench directed the ED to allow the petitioner to operate his bank accounts within 48 hours.

Today the bench directed that it is further observed that the exercise which is required to be carried out in terms of paragraph 6 of the directions given earlier to the Enforcement Directorate shall be carried out along with the operation and preferably within a period of forty eight (48) hours .

The Court, in its order dated August 8, 2022, said that it would be open to the Directorate to duly verify that all the petitioners maintain the balances deposited in the respective accounts as on the date of confiscation and those balances are proceeding before the adjudicating authority. Maintained and protected at all times during the pendency of All the petitioners shall also submit to the Enforcement Directorate all the details of the remittances that can be made from the respective bank accounts every 48 hours.

12 companies have moved the High Court through advocate Rajiv Mohan for de-freezing their bank accounts.

It was submitted before the bench that the bank accounts of the petitioners were put on debit freeze by the ED with effect from July 6 this year in connection with the money laundering case involving Vivo Mobiles.

The counsel submitted that due to freezing of bank accounts, the petitioner companies were not able to meet their expenses including rent, salary etc. In view of this, bank accounts should be allowed to operate.

It was also submitted that another batch of petitions seeking the same relief were allowed by the court on August 8.

Earlier this year on July 13, the High Court had allowed Vivo Mobile to operate the bank account, provided it furnishes a bank guarantee. 950 crores. The company had challenged the freezing of its bank accounts by the Enforcement Directorate (ED).

According to the ED, around 23 affiliated firms of Vivo India such as Grand Prospect International Communication Pvt Ltd (GPICPL) transferred substantial amounts to the firm and out of the total sale proceeds 1,25,185 crore, this remitted 62,476 crore, about 50 per cent of the business outside India, mainly to China.

“These companies have transferred huge amount of money to Vivo India. Also, out of the total sale proceeds 1,25,185 crore, sent to Vivo India Nearly 50 per cent of the 62,476 crore business is outside India, mainly to China,” the ED informed.

The ED said this after conducting searches at 48 locations across the country belonging to Vivo Mobiles India Pvt Ltd and its 23 affiliated companies such as GPICPL.

It further stated that GPICPL was registered on 3rd December, 2014 at Registrar of Companies, Shimla with the registered addresses of Solan in Himachal Pradesh and Gandhi Nagar, Jammu.

The company was incorporated by Zhengshen Ou, Bin Lu and Zhang Jie with the help of chartered accountant Nitin Garg.

“Bin Lu left India on April 26, 2018. Zhengshen Ou and Zhang Jie left India in 2021.”

PMLA probe initiated by ED An Enforcement Case Information Report (ECIR) against GPICPL and its director on February 3 this year on the basis of First Information Report (FIR) lodged by Kalkaji Police Station under Delhi Police on December 5 last year was recorded. Shareholders and certified professionals based on a complaint filed by the Ministry of Corporate Affairs.

This story has been published without modification in text from a wire agency feed.

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