Delhi HC Allows Vivo-India Executives One Week to Respond to ED's Challenge in Money Laundering Case

Delhi HC Allows Vivo-India Executives One Week to Respond to ED's Challenge in Money Laundering Case

On Wednesday, the Delhi High Court extended a one-week deadline for three vivo-India executives to respond to a plea by the Enforcement Directorate. This plea contests an order that allowed their release in a money laundering case.

Additional Solicitor General S. V. Raju contended that the trial court's order was "completely flawed," emphasizing the urgency of addressing the matter. Meanwhile, the counsel representing the accused requested more time to prepare and submit their response.

Justice Swarana Kanta Sharma listed the matter for further hearing on January 11 and said, "They will need to file a reply. I can't deny them"

ASG Raju asserted that one of the respondents, a Chinese national, posed a potential flight risk.

The counsel representing the accused mentioned that their clients had already surrendered their passports. Additionally, Justice Sharma hinted that, upon issuing a written order, she would instruct the accused to present themselves before the ED on Fridays and Mondays.

On Tuesday, a vacation bench led by Justice Tushar Rao Gedela issued a notice regarding the anti-money laundering agency's plea contesting the trial court's December 30 order. The bench acknowledged that since the executives had already been released, no interim order could be passed at this stage without hearing their side.

On December 30, the trial court ordered the release of three vivo-India executives, including Chinese national and interim CEO Hong Xuquan alias Terry, Chief Financial Officer Harinder Dahiya, and consultant Hemant Munjal. The court noted that the accused had not been presented before the court within 24 hours of their arrest, deeming their custody illegal.

The three accused filed a plea in the local court requesting bail. They argued that their arrest actually took place on December 21, contrary to the ED's record of December 22. They contended that because they were not presented before a court within 24 hours of this alleged arrest, their detention was deemed "illegal and legally untenable."

The ED counsel disputed this assertion, stating that following the formal arrest of the three individuals, they were provided with the reasons for their arrest and brought before the relevant court within 24 hours of their detention. The agency clarified that the premises of the three accused were searched on December 21. Subsequently, they were taken to the ED office for interrogation and a forensic examination of their phones. The formal arrest, according to the ED, occurred on the subsequent day, December 22.

In July of the previous year, the Enforcement Directorate conducted raids on the offices of Vivo-India and associated premises, alleging the exposure of a significant money laundering scheme involving Chinese nationals and several Indian companies.

The Enforcement Directorate had made allegations suggesting that an amount totaling ₹62,476 crore was transferred "illegally" from Vivo-India to China, purportedly to evade tax payments in India.

 

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