Vivo India Has Dedicated Heinous Financial Offence: ED Tells Delhi HC


The Enforcement Directorate has instructed the Delhi Excessive Courtroom that the investigation has been carried out towards Vivo India strictly in accordance with the provisions of PMLA and the offence pertains to cash laundering which is a heinous financial offence. The monetary probe company, in an affidavit filed in Delhi Excessive Courtroom, opposed the petition filed by the Chinese language smartphone producer and stated the industrial engagements of the petitioner and its status and goodwill are usually not a related consideration in the course of the investigation into the offence of cash laundering by the respondent.

The affidavit additional acknowledged that the workers of Vivo India, together with some Chinese language nationals, didn’t cooperate with the search proceedings and “had tried to abscond, take away and conceal digital units which had been retrieved by the search groups”.

The ED instructed the court docket that due means of legislation has been adopted whereas freezing the financial institution accounts of the petitioner and it can’t be stated to be violative of Article 21.

It stated Article 19(1)(g) is a freedom granted in respect of a lawful commerce, occupation and enterprise and never in respect of a enterprise carried out primarily based on fraud and misrepresentation of id.

The Delhi Excessive court docket had just lately allowed Vivo Cell to function the financial institution accounts topic to furnishing a financial institution assure of Rs 950 crore. VIVO has challenged the freezing of their financial institution accounts by the Enforcement Directorate (ED). The court docket has directed the ED to file a reply on the petition. The matter has been listed on July 28 for additional listening to.

The court docket had allowed Vivo to function its checking account on furnishing a financial institution assure of Rs 950 crore and to take care of the steadiness of Rs 251 crore already mendacity therein.

Moreover the corporate was requested to element remittances to ED. The court docket additionally stated that the financial institution assure might be deposited inside seven working days. Within the meantime, the ED will file its reply.

Senior advocate, who Siddharth Agrawal appeared for Vivo India, submitted that the financial institution accounts of the corporate have been “freezed and all of the transactions and circulate of funds have been freezed”.

The petitioner, he stated, shouldn’t be in a position to function the enterprise and that no firm can function with out a checking account.

He submitted that 9 financial institution accounts have been frozen and fee of dues and customized duties are paid from these accounts.

These accounts need to be “defreezed for continued provide of oxygen to function and capabilities to run the enterprise,” he additional submitted.

ED’s counsel submitted that “the proceeds of crime” have been disclosed however nature continues to be hidden. The true nature is to be found.

Advocate Zohaib Hossain for ED argued that the suspected quantity is Rs 1200 crore and solely 251 crore has been debit frozen. He additionally stated Rs1200 crore was paid to the petitioner by GPICPL and its former director is fleeing.

“We’re prepared to provide weekly or each day particulars of transactions. Permit me to breathe, no organisation can function with out a checking account,” Agrawal submitted.

Senior Advocate Siddharth Luthra, who additionally appeared for Vivo India, stated the corporate has 9,000 staff.

“There’s a legal responsibility,” he stated, including that freezing its accounts would result in firm’s “civil demise”.

Vivo India counsel had submitted that “grave injustice might be precipitated to the corporate and can negatively influence on the status and enterprise operations of the corporate”.

The petition stated freezing of the financial institution accounts won’t solely impede the present/potential enterprise operations of the petitioner carried out via the financial institution accounts however will bear an opposed impact on the petitioner’s operations in India and throughout the globe.

It stated if quantities within the petitioner’s financial institution accounts stay frozen, it will not be capable of pay its statutory dues to the competent authorities below numerous enactments, resulting in the petitioner being in additional violation of legislation.

“The freezing additionally prevents the fee of salaries to the 1000’s of staff of the petitioner,” the plea stated.

Based on the ED, Vivo India’s almost 23 related companies equivalent to Grand Prospect Worldwide Communication Pvt Ltd (GPICPL) transferred enormous quantities and out of the whole sale proceeds of Rs 1,25,185 crore, it remitted virtually 50 per cent of the turnover out of India, primarily to China.

“These firms are discovered to have transferred enormous quantities of funds to Vivo India. Additional, out of the whole sale proceeds of Rs 1,25,185 crores, Vivo India remitted Rs 62,476 crore virtually 50 per cent of the turnover out of India, primarily to China,” ED stated in a press release.

The ED in its assertion revealed the data after it carried out searches at 48 places spanning the nation belonging to Vivo Mobiles India Personal Restricted and its 23 related firms equivalent to GPICPL.

It additional stated GPICPL was registered on December 3, 2014, on the Registrar of Corporations, Shimla, with registered addresses of Solan in Himachal Pradesh and Gandhi Nagar, Jammu.

The corporate was included by Zhengshen Ou, Bin Lou and Zhang Jie with the assistance of Nitin Garg, a Chartered Accountant.

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

PMLA Investigation by ED was initiated by recording an Enforcement Case Data Report (ECIR) on February 3 this yr on the premise of a First Data Report (FIR) registered by Kalkaji Police Station below Delhi Police on December 5 final yr towards GPICPL and its Director, shareholders and certifying professionals on the premise of a criticism filed by Ministry of Company Affairs.

As per the FIR, GPICPL and its shareholders had used cast identification paperwork and falsified addresses on the time of incorporation.


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The Enforcement Directorate has instructed the Delhi Excessive Courtroom that the investigation has been carried out towards Vivo India strictly in accordance with the provisions of PMLA and the offence pertains to cash laundering which is a heinous financial offence. The monetary probe company, in an affidavit filed in Delhi Excessive Courtroom, opposed the petition…