The Delhi High Court on Wednesday lifted a freeze on Vivo India’s bank accounts imposed by the Enforcement Directorate (ED) amid money laundering allegations. The court also ordered the Chinese smartphone maker to provide a $119 million (about Rs 945 crore) bank guarantee in a bid to unfreeze its accounts. Also Read – Vivo remitted Rs 62,476 crore outside India to avoid paying tax: ED
It should be noted that Vivo had moved the Delhi HC, earlier this month, after ED froze all its funds. The smartphone maker, in its court filing, said freezing the accounts would prevent the company from paying statutory dues, wages and rent. It would also make it impossible to operate on a day-to-day basis. Vivo had said it “would not be able to pay dues and statutory salaries, listing 10 affected bank accounts and saying it had to make monthly payments of 28.26 billion Indian rupees ($355 million) “. Read also – Vivo, ZTE under government scanner for financial irregularities: report
The company had also said that if the situation continued, all operations of the company would come to a complete halt, which would not only result in substantial business losses suffered by the company, but also prevent the company from paying a sum of Rs 451 to the Treasury. public through various statutory contributions, reported The Economic Times. Also Read – Vivo X80 Pro: Are you willing to pay Rs 79,999 for a phone that is not from Samsung or Apple?
At Vivo’s plea hearing earlier this month, the Delhi HC had given ED until July 13 to respond to the company’s request and decide on the company’s representation in the ‘affair. She had also set July 13 as the date to decide on her next hearing.
Now, the court has lifted the freezing of the company’s accounts while attaching conditions to them.
The development comes just days after ED said it raided 48 Vivo India locations and 23 associated entities across the country as part of its investigation into the alleged money laundering case while alleging that Vivo India had handed over nearly 50 percent of its Indian turnover, which is worth Rs 62,476 crore, to China in a bid to avoid paying taxes here. As part of the investigation, ED seized 73 lakh cash and 2 kg of gold bars. It also froze 119 bank accounts linked to Vivo’s Indian operations.
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