The Court has also directed Vivo to maintain Rs 250 crores in its accounts, Bar and Bench reported.
Chinese mobile phone maker Vivo India has urged the ED to unfreeze its bank accounts so it can continue its business, contending that the debit freeze of all its ten bank accounts has “jeopardised its very existence” in the country.
Vivo India sent a representation to ED on July 7, two days after the phone maker and 23 associated companies were raided by the central agency.
Before launching nationwide raids on 48 premises belonging to Vivo India and its related entities, ED reached out to nine banks directing a debit freeze of all 10 bank accounts belonging to Vivo India.
Yes Bank, Bank of Baroda, HSBC, ICICI Bank, Citibank, IDBI Bank, HDFC Bank, Standard Chartered Bank and DBS Bank operate Vivo India’s accounts in branches across Gurgaon, Mumbai, New Delhi, Noida and Badshahpur.
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‘Our Legitimate Funds’
Orders issued by ED were served to Vivo India on July 6, according to the company’s representation.
Vivo India wrote to ED that it is unable to use Rs 251.91 crore lying in its accounts after debit freeze orders. It said, “The direction of debit freeze of all the bank accounts of Vivo will lead to a situation of commercial and civil death, and while we are committed to cooperating with the investigation, such an irreversible action, even if temporary, jeopardises the very existence of Vivo.”
The company said, “The situation is further aggravated as there are immediate payments to be made towards statutory dues, salaries, rent, monies for daily business operations, including refund of monies to consumers who have cancelled online orders and servicing of finance facilities from various banks.”
The debit freeze has caused “hardship” to all its operations and is “disrupting” its business operations, said the company.
“The said action is resulting in depriving us to use our legitimate funds in order to meet our operational expenses and statutory dues,” it said. “If this position continues, Vivo and its operations will come to a complete standstill, resulting not only in substantial commercial losses being suffered by Vivo, but will also deprive the exchequer of a sum of Rs 451 crore payable towards various statutory dues.”
It also said that “further exposes Vivo towards penalties and litigations for non-fulfilment of its obligations.”
