homebusiness Newscompanies NewsDelhi court extends ED custody of Lava MD and 3 Vivo executives in money laundering case
Delhi court extends ED custody of Lava MD and 3 Vivo executives in money laundering case
A Delhi court has decided to extend the custody of three executives from Vivo and Hari Om Rai, the Managing Director of Lava, as part of an ongoing money laundering investigation. During the proceedings, Hari Om Rai's legal team strongly contended that despite recent court rulings that criticised the ED for its conduct, there has been no observable change in the agency's behaviour, which seems to involve an indiscriminate exercise of its powers.
A Delhi court on Friday (October 13) has decided to extend the custody of three executives from Vivo and Hari Om Rai, the managing director of Lava, as part of an ongoing money laundering investigation.
The Enforcement Directorate (ED) had initially requested a 10-day extension for their custody, but the court has authorised an extension of only 3 days.
During the proceedings, Hari Om Rai's legal team strongly contended that despite recent court rulings that criticised the ED for its conduct, there has been no observable change in the agency's behaviour, which seems to involve an indiscriminate exercise of its powers.
The lawyers asserted that the Prevention of Money Laundering Act (PMLA) has been misused by the ED as a tool of oppression. They argued that the ED had failed to establish a clear and direct link between Hari Om Rai and any illicit financial activities, which should be a prerequisite for his arrest.
Furthermore, the defense team posited that if the ED's case revolves around allegations of circular investments by the Chinese company in the Indian market, then it would be a violation of Foreign Direct Investment (FDI) norms and a civil offense under the Foreign Exchange Management Act (FEMA), rather than a criminal offense under the PMLA.
Notably, in an unconventional move, Hari Om Rai personally addressed the court, emphasising that he, too, champions the national cause as Lava represents the last remaining Indian smartphone brand.
However, these arguments failed to sway the additional session's judge, who ultimately granted the ED an additional three days of custody for the individuals in question.
First Published: Oct 13, 2023 11:37 PM IST
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