Vivo India Denies Charges of ED of Money Laundering, Financial Terrorism

ED claimed that Vivo India laundered money to weaken India’s financial system. The ED called the suspected laundering an act of financial terrorist’

Vivo India said that the transfer of funds has a legitimate reason and were not intended to avoid tax payments in India

Vivo India called the account the account’s freezing illegal and without jurisdiction, as well as illegal in the eyes of law

Vivo India has denied being involved in any type of money laundering, and has refuted the charge of financial terrorism slapped on Vivo India by the Enforcement Directorate (ED) in the Delhi High Court.

Recently the ED claimed it was possible that Vivo India laundered money to weaken India’s financial system, going as that it was an act of financial terrorism’

The Chinese phonemaker claimed in an affidavit reviewed through ET that it had instead “contributed significantly to the economic and financial stable” in India.

Read more Nykaa’s Falguni Nayar surpasses Kiran Mazumdar Shaw as the most self-

In an affidavit filed by Vivo India to the Delhi High Court, the company stated that the payments have an legitimate basis and were aimed at the acquisition of raw materials as well as other services that are required by the manufacturing process of mobiles for the firm as well as not intended to save tax in India.

According to the affidavit Vivo India said that it acquires and imports certain components along with raw materials and components from China for the production of the products it sells in India and is required to make payment to the suppliers of its products. Vivo stated that it imports motherboards semiconductors printed circuit boards, as well as sensors, all from China.

It also stated that it is building its own manufacturing unit in India and to do this it purchased consulting services and market research, as well as architecture as well as R&D through China. Vivo stated that it paid the necessary customs duty on imports from China as well as other countries.

Illegal without Jurisdiction and Bad Law

With more details on the raids conducted by the ED at nearly fifty of Vivo India’s sites across India on the 5th of July The company stated that the ED confiscated documents and data that belong to Vivo India in the investigation.

The affidavit outlined that the document’s nature was unclear Vivo India’s statement reads, These include the underlying documentation of all company transactions, which includes the ones in relation to China.

Vivo added that ED took over the accounts of its customers, which puts the lives for its employees of 9,000 as well as their investments into Uttar Pradesh worth INR 6,090 Cr in danger. The Chinese OEM claimed it is in a position of not being able to access legitimate funds and the business activities are advancing towards an ‘uncertain commercial and civil death’.

Accordingly, Vivo India called the account freezing illegal illegal, unconstitutional and against the law in a statement the ED had failed to meet the rules under the Prevention of Money Laundering Act (PMLA).

The company claimed that ED has overstepped its authority and acted in violation of its jurisdiction. ED has acted arbitrarily without authority, and illegally.

Vivo stated that its bank account numbers were in the public domain, and the ED’s decision to freeze the accounts of Vivo was excessive’. Vivo argued it’s bank accounts shouldn’t be classified as the proceeds of criminal activity.

For the sake of background, ED had filed an Affidavit to the High Court in which it stated that the allegations of money laundering were intended to undermine the financial system of the nation and to compromise the sovereignty and integrity of the nation.

ED also mentioned the Odisha High Court judgement of 2020 which classified money laundering as an act of “financial terrorists’. But, Vivo India argued that the decision was a’misplaced attempt to create an atmosphere of suspicion within the country.

Read more Bollywood actor Shilpa Shetty invests in D2C Nutraceutical Brands: Fast&Up, Chicnutrix

Vivo India attracted the attention of the ED in March, in March when India’s Ministry of Corporate Affairs recommended an investigation into the business. Further raids and an investigation on Vivo India revealed that it had put 62,476 Cr in payments which is close to the entire amount of INR 1,25185 Cr in India.

The Delhi High Court allowed Vivo India to make use of its bank accounts under three conditions. These included a bank guarantee amounting to INR 950 crore, keeping an account reserve of INR 250 Cr , and providing all details regarding remittances to ED. To date, Vivo India has furnished the bank guarantee and sent it to the ED the firm’s counsel told the court.

Leave a Reply