The Enforcement Directorate (ED) has taken a significant step in its money laundering investigation against Chinese smartphone maker Vivo by filing its inaugural charge sheet. The prosecution complaint, under sections of the Prevention of Money Laundering Act (PMLA), includes Vivo-India among the accused, alongside individuals arrested in connection with the case.
This action follows the arrest of four individuals, including the MD of Lava International mobile company, Hari Om Rai, and Chinese national Guangwen alias Andrew Kuang. Chartered Accountants Nitin Garg and Rajan Malik were also taken into custody as part of the ongoing investigation.
The ED, in its remand papers submitted before a local court, asserted that the activities of these individuals led to wrongful gains for Vivo-India, impacting India’s economic sovereignty. Last year’s raids on vivo-India and its associated entities uncovered a significant money laundering network involving Chinese nationals and multiple Indian companies.
Allegations by the ED suggest an “illegal” transfer of a staggering ₹62,476 crore from Vivo-India to China to evade taxes in India. Vivo responded by emphasizing its commitment to ethical principles and legal compliance. Meanwhile, Hari Om Rai clarified that his association with Vivo ceased in 2014 and denied any involvement in transactions or benefit derived from the company or its related entities.
The ED’s investigation began with an enforcement case information report (ECIR) filed in February, stemming from a Delhi Police FIR against an associated company of vivo. The Corporate Affairs Ministry had lodged a complaint, alleging the use of “forged” identification documents during the incorporation of Grand Prospect International Communication Pvt Ltd (GPICPL) in 2014.
Sources By Agencies