HC stays ED attachment of IndusViva assets

Hyderabad: The High Court of Telangana asked the Enforcement Directorate to cease the proceedings of Adjudicating Authority to confirm the provisional attachment on the assets of IndusViva Healthsciences Pvt Ltd.

The ED had provisionally attached the assets of the Bengaluru-based healthcare company, who sells their products through direct selling. The ruling was passed by the bench consisting of Chief Justice Ujjal Bhuyan and Justice CV Bhaskar Reddy in favour of the petitioner, in a writ filed by Abhilash Thomas, the CEO of the Company.

The court considered the arguments of the petitioner that the ED failed to comply to sub section (3) of section 5 and (2), (3) and (5) (b) of section 6 under Prevention of Money Laundering Act (PMLA).

Early last year, Economic Offence Wing of Cyberabad Commissionerate had initiated a probe against the company based on an FIR filed at Gachibowli police station followed by two more upon which the ED's case was established, and paused the daily operations of the company and froze the bank accounts. Later in July 2021, the High Court of Telangana permitted the company to de-freeze the accounts and continue their operations.

This order has come as a big relief for not only the company but also the entire direct selling industry, especially when a lot of confusions are floating around after the Consumer Protection (Direct Selling) Rules 2021 was issued.

"This will boost the trust of lakhs of aspirants who want to choose direct selling as a career. We understand that the investigating agencies are performing their role and we are always ready to cooperate with them. We have 100 per cent belief in the judicial system of the country," said the company sources.