Chinese mobile phone maker Vivo filed a plea in the Delhi High Court on Friday challenging the freezing of its various bank accounts by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act 2002. silver (PMLA). Also Read – Vivo remitted Rs 62,476 crore outside India to avoid paying tax: ED
In the brief motion, Vivo said the orders against her are in clear violation of the PMLA’s Section 17 mandate, as they involve no reason to freeze, let alone “reasons to believe.” convincing as to why the bank account should be frozen. It is a generic order placed mechanically without any mind application. Also Read – Vivo Executives May Have Flee India Amid ED Money Laundering Probe: Report
He stated that the total non-application of spirit and arbitrariness is evident from the fact that even the amount in question was not quantified by the defendant and that blanket orders freezing all bank accounts were were pronounced, causing substantial and irreparable damage to the applicant and seriously impacting its business and reputation. Also Read – Vivo India offices raided by the Enforcement Branch under the Money Laundering Act
He added that the frozen accounts are used for the payment of salaries and statutory contributions, the opening of letters of credit for the operations of the petitioner and for all kinds of expenses necessary for the daily functioning of the petitioner.
“Monthly payments of around Rs 2,826 crore are to be made for statutory dues, salaries, rent, funds for daily business operations. Due to the freezing of bank accounts, the petitioner will not be able to meet his above-mentioned obligations not only to various statutory authorities, but also to his employees and customers,” he added.
Vivo told the court that the dissemination of information about the searches to the emergency room had tarnished its image with its suppliers and customers, “resulting in reputational and financial loss, and irreparable damage to the years of goodwill developed” by it .
“The freezing of bank accounts will not only hinder the petitioner’s existing/potential business operations conducted through the bank accounts, but will adversely affect the petitioner’s operations across the world,” he added.
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