Vivo requests the High Court to remove the bank account suspension, unable to pay workers
In a plea to the Delhi High Court, Vivo India stated because of the account ban, the company will be unable to pay regulatory dues and salaries.
According to a court filing, the Indian division of Chinese smartphone manufacturer Vivo has petitioned a Delhi court to overturn the Enforcement Directorate’s order to freeze its bank accounts. The firm claims the action was “wrong in law” and will hurt its commercial operations.
Vivo India informed the Delhi High Court in a petition that the account ban would prevent the business from paying statutory dues and salaries.
The Delhi High Court has ordered the ED to make a decision by Wednesday regarding Vivo’s request for authorization to access its blocked bank accounts. In addition, the court has instructed ED to seek guidance on Vivo’s motion that contests the freezing of its nine bank accounts.
As part of an investigation into possible money laundering by the phone manufacturer, the Indian Financial Crime Agency announced on Thursday that it had closed 119 bank accounts belonging to Vivo’s India company and its affiliates that were storing 4.65 billion rupees.
Vivo, a manufacturer of smartphones, allegedly “illegally” transported a staggering 62,476 crore to China in order to avoid paying taxes in India, according to the ED, which also claimed to have broken a significant money-laundering conspiracy involving Chinese citizens and other Indian businesses.
It stated that this amount represents nearly half of Vivo’s $1,25,185 crore in annual revenue without specifying the time frame of the transaction.According to Vivo, it is dedicated to completely upholding Indian laws and is committed to working with authorities.
Ten of Vivo’s bank accounts were named as being impacted by the ruling in the court document. The business estimated that it would have to pay 28.26 billion rupees per month.