Interim stay allows Vivo Mobile to use frozen accounts with conditions

The Court granted an interim stay allowing Vivo Mobile India Pvt. LTD. to operate frozen bank accounts with a condition to maintain a specified credit balance and submit statements every 48 hours. The petitioner is prohibited from transferring funds abroad until the next hearing. Compliance with Enforcement Directorate's orders is emphasized to ensure transparency in financial transactions. A restriction on repatriating proceeds from the frozen accounts outside the country is imposed to safeguard against misuse during the ongoing investigation.

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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.

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