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Vivo India moves Delhi HC over bank accounts frozen by ED, to be heard today
The Enforcement Directorate this week raided 48 locations in connection with 'forged identification documents and falsified addresses' by a number of firms linked with Vivo India.
Vivo Mobile India - the Indian branch of the Chinese mobile phone manufacturer - on Friday moved the Delhi high court against the freezing of all its bank accounts by the Enforcement Directorate in connection with a money laundering case. The court agreed to hear the plea on urgent basis today.
Senior advocate Siddharth Luthra mentioned the matter before a bench headed by chief justice Satish Chandra Sharma. "We have 9,000 employees. There is a liability," Luthra was quoted by news agency ANI.
Vivo India argued that freezing of accounts would not only impede business operations in India but also adversely affect those around the world.
"If amounts in the petitioner's bank accounts remain frozen, it would not be able to pay statutory dues to competent authorities under various enactments, leading to the petitioner being in further violation of law. The freezing also prevents payment of salaries to thousands of employees..." it said.
On Thursday the ED said nearly half the company's profits - amounting to ₹62,476 crore - had been remitted out of the country and primarily to China.
"These remittances were made to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India,” the ED said.
The agency named 23 associated companies.
READ | 50% Vivo India transferred out of nation, says ED
This was after the ED this week raided 48 locations over 'forged identification documents and falsified addresses' by firms linked with Vivo India.
The ED swung into action based on a FIR by Delhi Police's Economic Offences Wing against a Jammu and Kashmir distributor; it was alleged a few Chinese shareholders in that company had forged their identity documents.
In May, Vivo and ZTE Corp, faced an investigation for alleged financial irregularities as the government increases scrutiny of businesses originating in China, with whom India is locked in a tense border stand-off.
Earlier this week, Vivo India said it is ‘cooperating with the authorities to provide all required information’. "As a responsible corporate, we are committed to be fully compliant with laws," a spokesperson said.
Last month China said ‘frequent investigations’ into local units of Chinese firms 'impeded the improvement of business environment' in India. China this week said it hoped India would conduct investigations per the law and provide a 'fair' and 'non-discriminatory' business environment for Chinese firms.
With input from ANI, PTI
