ED Chargesheets Chinese Phone Maker Vivo in Money Laundering Case

The Enforcement Directorate (ED) has filed its first charge sheet in the money laundering case against Chinese smartphone maker Vivo and others, according to official sources. The prosecution complaint was submitted to a special court in New Delhi under the criminal sections of the Prevention of Money Laundering Act (PMLA), with Vivo-India being named as an accused party along with individuals already arrested in this case.

As part of its investigation, the federal probe agency had arrested four individuals, including Hari Om Rai, the Managing Director of Lava International mobile company, Chinese national Guangwen alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik.

The ED had previously alleged that the activities of these individuals enabled Vivo-India to make unlawful gains that compromised India’s economic sovereignty. In July of last year, the agency had conducted raids on Vivo-India and its associates, claiming to have uncovered a significant money laundering operation involving Chinese nationals and multiple Indian companies.

The ED had further alleged that Vivo-India had illegally transferred a colossal amount of Rs 62,476 crore to China in order to evade taxes in India. In response, Vivo-India had stated that it adheres to ethical principles and remains committed to legal compliance. Hari Om Rai had also denied any involvement with Vivo or its representatives since 2014, stating that he had no association with any alleged proceeds of crime.

The Corporate Affairs Ministry had filed a police complaint, accusing GPICPL and its shareholders of using forged identification documents and falsified addresses during the company’s incorporation in December 2014.

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