Vivo urges ED to unfreeze bank accounts to continue business

Chinese mobile phone maker Vivo has urged the Enforcement Directorate (ED) to unfreeze its bank accounts so it can continue its business.

Vivo claimed that the debit freeze of all its ten bank accounts was an irreversible action that would lead to "a situation of commercial and civil death" and that the action had jeopardised its very existence in the country.

Vivo India sent a representation to the ED on July 7, two days after the smartphone manufacturer and 23 associated companies were raided by the central agency in a money-laundering investigation.

Before launching nationwide raids, the agency tasked with investigating money laundering and foreign exchange violations reached out to nine banks directing a debit freeze of all 10 bank accounts belonging to Vivo India.

Leading banks such as Bank of Baroda, Yes Bank, HSBC, ICICI Bank, Citibank, IDBI Bank and HDFC Bank are among those operating Vivo India's accounts in branches across Gurugram, Mumbai, New Delhi, Noida, and Badshahpur.

Vivo India wrote to ED that it was unable to use Rs 251.91 crore lying in its accounts, the report said. The debit freeze caused "hardship" to all its operations and was "disrupting" its business operations, said Vivo.

Vivo directors Zhengshen Ou and Zhang Jie have fled India as the ED intensified its inquiry into the money-laundering case against the Chinese firm, news agency ANI reported on July 6, citing sources.