HC authorizes 14 entities to manage bank accounts in case Vivo-ED, Telecom News, ET Telecom

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MUMBAI: Fourteen entities, which the Enforcement Directorate (ED) says are linked to Chinese smartphone maker Vivo, were cleared by the Delhi High Court on Monday to operate their frozen bank accounts.

Said authorizations are subject to maintaining the balance that was in the accounts on the date of the agency’s search in a money laundering investigation, Judge Yashwant Varma said.

Entities were asked to provide details of remittances made from frozen bank accounts every 48 hours.

The court left it to the investigative agency to verify that the balances are maintained as they were on the date of the search.

In July, the High Court had asked the handset maker to post a bank guarantee of Rs 950 crore with the ED to allow it to tap bank accounts frozen by the agency as part of a money laundering investigation. silver.

At Monday’s hearing, the 14 entities challenged flow freeze orders passed by ED which claimed the companies were Vivo’s agents.

Lawyers for the entities claimed that they were not related to Vivo at all and only bought goods from the company and resold them.

The AML attorney argued that the research material will show that the transactions between these entities and Vivo that the money quantified as proceeds of crime is Rs 38,641 crore.

A total of 27 entities are said to be involved with Vivo in this case and among them, 14 have approached the court to unblock the bank accounts.

“During the investigation, searches were carried out by DRI officers at the factory premises of M/s Vivo India, which led to the recovery of incriminating evidence indicating deliberate misrepresentation in the description of certain items imported by M/s Vivo India, for use in the manufacture of mobile phones,” the agency said in an official statement.

On July 5, the investigative agency had raided several locations across the country as part of the money laundering investigation against Vivo and its related companies. The 14 entities that approached the high court are — Rui Chuang Technologies Pvt Ltd, Unimay Electronic Pvt Ltd, Technology Transforms Pvt Ltd, Junwei Electronic Pvt Ltd, Yingjia Communication Pvt Ltd, Joinmay Electronic Pvt Ltd, Huijin Electronic India Pvt Ltd, Haijin Trade India Pvt Ltd, Fangs Technology Pvt Ltd, Iqonic Mobile Pvt Ltd, Aohua Mobile India Pvt Ltd, Joinmay Electronics Pvt Ltd, Hisoa Electronic Pvt Ltd and Haicheng Mobile Pvt Ltd.

The ED investigated Vivo and its sister concerns in an alleged money laundering case. In early July, the agency raided 44 sites in northern India under the provisions of the Prevention of Money Laundering Act (PMLA).

Vivo has also been investigated by the Directorate of Tax Intelligence, which said it detected duty evasion of Rs2,217 crore.

Vivo has denied any wrongdoing in either case.