Delhi High Court has allowed the de-freezing of Chinese phone maker Vivo's bank accounts attached by Enforcement Directorate(ED). Delhi HC, while permitting the de-freezing of accounts, imposed conditions such as directing the Chinese smartphone maker to furnish a bank guarantee of Rs 950 crore and keeping a minimum balance of Rs 250 crores in its bank accounts.

Vivo had earlier challenged the freezing of bank accounts by ED, terming the probe as a fishing enquiry and pleaded "civil death".

ED, on the other hand, had said that Vivo's crime amount could be as high as Rs 1,200 crore. Next hearing is scheduled on July 28.

Also read: Vivo India moves Delhi HC after ED says firm transferred 50% of turnover to China to avoid paying taxes

ED had earlier said the company sent Rs 62,476 crores — almost 50 percent of its turnover in India to other nations, especially China. The purpose of the company was to disclose huge losses to avoid payment of taxes in the country, the law enforcement agency said.

The ED said that 119 bank accounts had been seized so far under the provisions of Prevention of Money Laundering Act (PMLA), 2002. A total sum of Rs 465 crore, including Rs 66 crore of Vivo India, 2 kg gold bars, and approximately Rs 73 lakh cash had been seized by the agency.

The agency also conducted searches at several locations across the country including UP, Delhi, Maharashtra, and Meghalaya.

Advocates Sidharth Luthra and Siddharth Agarwal, appearing for Vivo in the Delhi HC, had earlier argued that the bank accounts' freeze had brought the firm's functioning to a standstill. The company have to pay crores as statutory dues such as Customs duties, GST, TDS, etc apart from the payment of salaries and rents.

First Published:Jul 13, 2022 3:14 PM IST