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The Delhi High Court (HC) on Monday granted permission to 14 entities that are allegedly related to Chinese smartphone maker Vivo to operate their frozen bank accounts with condition. The high court has allowed those 14 entities to operate their frozen bank accounts subject to maintaining the balance as on the date of ED's search in a money laundering probe.
The high court said these entities shall also give details to ED about their remittances made from the frozen bank accounts after every 48 hours.
Justice Yashwant Varma said subject to the petitioner companies maintaining a balance as was available on the day of freezing the individual bank accounts, the debit freeze order of ED can be modified.
The high court also said the Enforcement Directorate can verify that balances are maintained as they stood on the date of search in the money laundering probe. It said the accounts should be open for the law enforcement agency to conduct their probe.
On July 13, the high court had allowed Vivo to operate its various bank accounts frozen by the ED in connection with the money laundering probe on the condition that it furnishes a bank guarantee of ₹950 crore with the agency. The high court had also asked Vivo to maintain a balance of ₹251 crore in the bank accounts and ordered it to not use the funds till further direction is issued.
On Monday, the entities had challenged the debit freeze orders. The counsel appearing for the entities argued that all the entities were not related to Vivo but only purchased good from the company. The ED's counsel, however, contended these entities have assailed the order after expiry of 30 days and this batch of firms is not confined to proceeds of crime quantified at ₹1,200 crore.
The anti-money laundering agency's counsel said the material of search will show that transactions between these entities and Vivo that the money quantified as the proceeds of crime is ₹38,641 crore. He also said there are a total of 27 entities allegedly involved with Vivo in the matter and out of them 14 have approached the court.
The 14 entities which have 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.