[Vivo Money Laundering Case] ED Attempting To Disrupt Business, Vivo Tells Delhi High Court

Delhi High Court on Friday directed the Enforcement Directorate (ED) to consider the representation made by Vivo by July 13, so as to allow it to operate its frozen bank accounts.The Chinese mobile manufacturer told the Delhi High Court that the Enforcement Directorate had undertaken a "roving and fishing enquiry" against it and continued to make "various attempts to disrupt" its business.

The development came upon the Enforcement Directorate(ED) freezing Vivo's bank accounts and Vivo challenging the same in court.

Vivo had mentioned the matter early morning for urgent hearing of the case and stated that the accounts were being used by the company for day to day functioning including payment of salaries and statutory dues. Vivo mentioned the matter before Chief Justice Satish Chandra Sharma, who allowed the same and listed the matter before the bench of Justice Yashwant Varma.

In its petition Vivo claimed that it had made a representation to the ED stating that monthly payment of around Rs.2,826 crores have to be made towards statutory dues, salaries, rent, monies for daily business operations and that since Vivo's bank accounts were frozen, it was finding it difficult to honour its aforesaid obligations not only towards various statutory authorities but also towards its employees and customers.

Background

The ED has searched 48 locations across the country belonging to Vivo mobiles and 3 associated companies in connection with a money laundering case. The ED has also directed 10 of Vivo's bank accounts to be frozen and had also searched its Greater Noida factory on Thursday till late hours.

Vivo has claimed that the search conducted by ED has greatly maligned and disparaged its reputation among its suppliers and customers leading to repetitional and financial loss.

Vivo also claimed that the ED has directed freezing its bank accounts without identifying or quantifying the purported proceeds of crime or involvement in money laundering, which is a prerequisite for exercise of power under the Prevention of Money Laundering Act.

Case Title: Vivo Mobile India Pvt. Ltd. v. Directorate of Enforcement