NEW DELHI: The Delhi High Court has dismissed habeas corpus petitions of three individuals who are accused in a money laundering case related to Chinese smartphone-maker Vivo.
The petitioners argued that their continued detention in Tihar jail was illegal due to the absence of a court order extending their judicial custody beyond December 7.
On November 23, Additional Sessions Judge Devender Kumar Jangala of Patiala House Courts, had extended the judicial custody of accused individuals, including the managing director of Lava International mobile company by 14 days.
The four accused are -- Lava International MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, Chartered Accountants Nitin Garg and Rajan Malik.
The three petitioners, arrested on October 10, claimed that their judicial custody was last extended until December 7, and that further detention without a judicial order violated legal provisions.
The ED countered, explaining that a charge sheet was filed on December 6, and the accused were produced via video conference on December 7.
The court was informed that due to a transfer, the accused were not physically brought before ASJ-04, who then adjourned the case and issued production warrants.
After examining the facts, Justices Suresh Kumar Kait and Shalinder Kaur concluded that there was no break in the custody of the accused, as the trial court had issued production warrants to ensure their presence on December 13, indicating lawful judicial custody.
The court upheld the ED's stance, saying that the accused's legal representatives were present, and no objections were raised during the issuance of production warrants.
It clarified that continuous custody is maintained when a legitimate reason prevents physical appearance, as in this case.
The bench concluded that the three accused were in lawful judicial custody and dismissed their Habeas Corpus plea.
Earlier, the court had noted that the probe agency was able to make out the case for grant of further custody.
"There appears to be continuity in the stand taken by the Enforcement Directorate with regard to extraction of digital data and the accused persons to be confronted with the same. Therefore, considering the settled principles of law and Delhi High Court Rules, I am of the considered opinion that the Enforcement Directorate is able to make out the case for grant of further custody remand,” the judge had said.
The arrests were made after the financial probe agency carried out searches at the premises of the four accused on Monday and recovered cash to the tune of Rs 10 lakh.
The ED’s action came more than a year after it carried out searches at 48 locations across the country belonging to Vivo Mobiles India Private Ltd and its 23 associated companies such as Grand Prospect International Communication Pvt Ltd (GPICPL), and claimed that it has busted a major money laundering racket involving Chinese nationals and multiple Indian companies.
According to the ED, Vivo Mobiles India Pvt Ltd was incorporated on August 1, 2014 as a subsidiary of Multi Accord Ltd, a Hong Kong-based company, and was registered at ROC Delhi.
GPICPL was registered on December 3, 2014 at ROC Shimla, with registered addresses of Solan, Himachal Pradesh, and Gandhinagar, Jammu.
The PMLA investigation by ED was initiated by registering a money laundering case on February 3, 2022 on the basis of an FIR registered at the Kalkaji police station in the national Capital by Delhi Police against the GPICPL, its director, shareholders and certifying professionals, etc., on the basis of a complaint filed by the Ministry of Corporate Affairs.