New Delhi: Vivo India on Friday approached the Delhi Substantial Court docket to challenge the freezing of the company`s bank account by the Enforcement Directorate (ED) in link with a money laundering scenario. Senior Advocate Siddharth Luthra on Friday mentioned the make any difference prior to the bench headed by Delhi Large Court Main Justice Satish Chandra Sharma also comprising Justice Subramonium Prasad and submitted that ED has frozen all our financial institution accounts.

“We have 9000 staff members. There is a legal responsibility,” Luthra reported. The bench consented to hear the subject on an urgent basis today. (ALSO Study: Are 4-working day function months, versatile hrs the long term of whole-time? Salaried staff members just take take note) 

Vivo India, in the plea, submitted that grave injustice will be brought about to the firm because of to this act of the Respondent (ED) and will negatively affect its track record and small business operations. (ALSO Read through: Gopinath 1st lady to be on IMF’s ‘wall of ‘wall of former main economists) 

The freezing of the Financial institution Accounts will not only impede the present/possible business enterprise operations of the Petitioner conducted as a result of the Bank Accounts but will bear an adverse impact on the Petitioner`s functions in India and throughout the globe, the plea reported. 

“If amounts in the Petitioner`s Lender Accounts continue to be frozen, it would not be able to pay out its statutory dues to the qualified authorities underneath different enactments, leading to the Petitioner, currently being in further violation of law. The freezing also helps prevent the payment of salaries to the 1000’s of staff members of the Petitioner.”

In accordance to the ED, Vivo India`s approximately 23 connected firms this kind of as Grand Prospect International Interaction Pvt Ltd (GPICPL) transferred huge quantities to the company and out of the complete sale proceeds of Rs 1,25,185 crores, it remitted Rs 62,476 crores pretty much 50 for each cent of the turnover out of India, primarily to China.

The agency claimed these entities are Rui Chuang Technologies Non-public Restricted (Ahmedabad), V Aspiration Technological innovation and Communication Private Ltd (Hyderabad), Regenvo Mobile Non-public Minimal (Lucknow), Fangs Technology Non-public Minimal (Chennai), Weiwo Conversation Private Restricted (Bangalore), Bubugao Interaction Private Restricted (Jaipur), Haicheng Cell (India) Private Minimal (New Delhi), Joinmay Mumbai Electronics Pvt. Ltd (Mumbai), Yingjia Communication Private Constrained (Kolkata), Jie Lian Cell India Pvt. Ltd. (Indore), Vigour Mobile India Personal Limited (Gurgaon), Hisoa Electronic Non-public Restricted (Pune), Haijin Trade India Personal Constrained (Kochi), Rongsheng Mobile India Private Limited (Guwahati), Morefun Interaction Private Minimal (Patna), Aohua Cell India Personal Constrained (Raipur), Pioneer Cellular Non-public Confined (Bhubhaneswar), Unimay Digital Non-public Restricted (Nagpur), Junwei Electronic Non-public Limited (Aurangabad), Huijin Electronic India Private Limited (Ranchi), MGM Product sales Personal Minimal (Dehradun) and Joinmay Electronic Pvt Ltd (Mumbai). 

“These organizations are located to have transferred substantial amounts of money to Vivo India. Further, out of the overall sale proceeds of Rs 1,25,185 crores, Vivo India remitted Rs 62,476 crores practically 50 for every cent of the turnover out of India, generally to China,” ED claimed in a statement.

These remittances ended up manufactured in get to disclose massive losses in Indian incorporated companies to steer clear of payment of taxes in India.

The ED in its statement revealed the facts following it carried out a research at 48 locations spanning the region belonging to Vivo Mobiles India Private Confined and its 23 related providers this kind of as GPICPL.ED said Vivo Mobiles India Pvt Ltd was included on August 1, 2014, as a subsidiary of Multi Accord Ltd, a Hong Kong-primarily based business and was registered at the Registrar of Firms, Delhi. It more explained GPICPL was registered on December 3, 2014, at Registrar of Corporations, Shimla, with registered addresses of Solan in Himachal Pradesh and Gandhi Nagar, Jammu.

The organization was integrated by Zhengshen Ou, Bin Lou and Zhang Jie with the help of Nitin Garg, a Chartered Accountant. “Bin Lou remaining India on April 26, 2018. Zhengshen Ou and Zhang Jie remaining India in 2021.”
PMLA Investigation by ED was initiated by recording an Enforcement Case Information Report (ECIR) on February 3 this yr on the basis of a Very first Information Report (FIR) registered by Kalkaji police station below Delhi Law enforcement on December 5 final yr from GPICPL and its Director, shareholders and certifying specialists on the foundation of a complaint submitted by Ministry of Company Affairs. As for every the FIR, GPICPL and its shareholders had utilized forged identification files and falsified addresses at the time of incorporation.

The allegations have been located to be legitimate as the investigation uncovered that the addresses described by the directors of GPICPL did not belong to them, but in truth, it was a govt setting up and the house of a senior bureaucrat.ED`s investigation unveiled that the exact director of GPICPL, specifically Bin Lou, was also an ex-director of Vivo.

He had included several companies throughout the place unfold across numerous states, a full of 18 firms close to the exact same time, just right after the incorporation of Vivo in 2014-15 and further a different Chinese national Zhixin Wei experienced incorporated a further more 4 providers. 

Throughout raids, the ED claimed, thanks processes as per regulation have been adopted at every premise but “the workers of Vivo India, together with some Chinese Nationals, did not cooperate with the look for proceedings and had experimented with to abscond, eliminate and cover digital gadgets which have been retrieved by the look for teams”.
So far, the ED mentioned, 119 financial institution accounts of various entities with a gross equilibrium to the tune of Rs 465 crores such as Set Deposits to the tune of 66 crores of Vivo India, 2 kg gold bars, and income total to the tune of approximately Rs 73 lakhs have been seized less than the provisions of PMLA, 2002. 

