2022 (9) TMI 1437 - HC - Money Laundering

Seeking defreezing of Bank Accounts - HELD THAT - Bearing in mind the interim directions which were passed on the writ petition as well as the orders passed on the writ petitions preferred by other dealers of VIVO MOBILE INDIA PVT. LTD, M/S GRAND PROSPECT INTERNATIONAL COMMUNICATION PVT LTD VERSUS DIRECTORATE OF ENFORCEMENT 2022 (9) TMI 1435 - DELHI HIGH COURT , the Court provides in the interim that while the petitioner shall be permitted to operate the bank accounts which stand freezed pursuant to the impugned orders, it shall ensure that a credit balance of Rs. 10,45,94,868.9/- is maintained at all times. Additionally, the petitioner shall furnish statement of accounts of all the bank accounts forming subject matter of the freezing order every 48 hours to the Enforcement Directorate. The Court further restrains the petitioner from repatriating any proceeds which may come to be credited to the subject bank accounts outside the country till the next date of listing.

Summary

Issues:
1. Interim Stay on Freezing of Bank Accounts
2. Compliance with Enforcement Directorate's Orders
3. Restriction on Repatriating Proceeds

Interim Stay on Freezing of Bank Accounts:
The judgment addresses the issue of freezing bank accounts in the case related to Vivo Mobile India Pvt. LTD. versus Directorate of Enforcement. The Court allows the petitioner to operate the frozen bank accounts but imposes a condition to maintain a credit balance of Rs. 10,45,94,868.9 at all times. Furthermore, the petitioner must submit statements of accounts for all frozen bank accounts every 48 hours to the Enforcement Directorate. The interim stay also prohibits the petitioner from transferring any funds outside the country until the next hearing scheduled for 20.09.2022.

Compliance with Enforcement Directorate's Orders:
The judgment emphasizes compliance with the Enforcement Directorate's orders by directing the petitioner to furnish bank account statements regularly and maintain a specified credit balance. The Court's decision aims to ensure transparency and accountability in financial transactions related to the ongoing investigation. By tagging the current writ petition with a previous case, the Court indicates a connection between the issues raised and the principal challenge presented in the earlier matter.

Restriction on Repatriating Proceeds:
In addition to allowing the operation of frozen bank accounts under certain conditions, the Court imposes a restriction on repatriating any proceeds credited to these accounts outside the country until the next hearing date. This restriction serves to prevent the potential misuse or diversion of funds during the ongoing legal proceedings. The judgment underscores the importance of preserving the financial integrity of the accounts subject to investigation and highlights the Court's proactive measures to prevent unauthorized fund transfers.