Vivo asks court to re-open its bank accounts, says we have liability

Vivo has asked the court to lift the freezing of the bank accounts of the company, says it has 9000 employees to feed.

| Updated on: Aug 22 2022, 13:40 IST
Vivo V23 Pro
Vivo is currently undergoing an investigation by the ED over an alleged money laundering case.  (HT Tech)
Vivo V23 Pro
Vivo is currently undergoing an investigation by the ED over an alleged money laundering case.  (HT Tech)

In an ongoing tussle between the Enforcement Directorate and Chinese smartphone maker Vivo, the latter has asked the courts to let it access its bank accounts. In relation to the money laundering case that Vivo is accused of, the ED had freezed the bank accounts of the company earlier. Vivo said that the move was “bad in law” in a statement to the Reuters, and that it would eventually harm its business operations in India. The ED is yet to respond on the matter.

In a fresh request to the Delhi High Court, Vivo India said that due to the frozen bank accounts, the company would be unable to pay all the dues as well as the salaries of its employees. The company said that it needs to pay monthly payments of Rs. 28.26 billion, which is currently restricted due to the ED's decision. Note that Vivo had previously asked the ED to allow it to ise its accounts for the same.

Vivo asks court to let it use the accounts

The Delhi High Court in the meantime has asked the ED to decide on that request and set a new hearing date for the same. The agency will have until July 13 to take a call on the same.

Note that the ED had previously announced that it had blocked almost Rs. 4.65 billion ($59 million) in over 119 bank accounts linked to Vivo's India business and its associates. The ED is still investigating the alleged money laundering claims done by the smartphone maker.

Vivo's parent country China also swung into action regarding the issue after it came to know of the same. After both Vivo and Xiaomi cases, the Chinese embassy has asked the Indian government to call for a fair business environment for its companies. It said that all these investigations have damaged the confidence of these companies.

Vivo, on the other hand, says that it is fully cooperating with the agency and has been fully complying with the local laws.

Vivo is currently one of the largest smartphone manufacturers in India, while rival brand Xiaomi also keeps dominating the sales charts. Earlier today, reports of Huawei also getting investigated by the Income Tax Department for similar reasons came up.

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First Published Date: 08 Jul, 17:29 IST