In the unfolding saga of the Vivo-led ‘Financial Terrorism’ case, a recent development has taken center stage since its emergence in July 2022. According to a report released by PTI today, the Enforcement Directorate has formally lodged its inaugural charge sheet as part of the ongoing money laundering investigation involving the Chinese smartphone giant Vivo and several others.
The prosecution complaint has been presented before a special court, invoking the criminal provisions of the Prevention of Money Laundering Act (PMLA). However, the scope of the investigation extends beyond Vivo, as Hari Om Rai, the Managing Director of Lava International mobile, and other Indian companies find themselves implicated in the case.
Thus far, the federal probe agency has apprehended four individuals in the course of its inquiry. Among those in custody are Chinese national Guangwen, also known as Andrew Kuang, as well as Chartered Accountants Nitin Garg and Rajan Malik. Notably, Vivo-India has been formally accused, adding another layer of complexity to this high-stakes investigation.
The genesis of this high-profile money laundering case stems from allegations that Lava’s Managing Director and other influential figures in the consumer technology sector purportedly assisted Vivo in executing illicit financial transactions.
The Enforcement Directorate’s raids on Vivo India revealed an expansive money laundering network involving prominent figures from Chinese smartphone companies and various Indian brands.
Recent arrests made by the ED, backed by remand papers presented in a local court, underscore the gravity of the situation. It has been reported that the actions of the detained individuals facilitated Vivo-India in securing wrongful gains, significantly impacting the economic sovereignty of India.
The Enforcement Directorate contends that an alarming ₹62,476 crore was “illegally” transferred by Vivo-India to China, ostensibly to evade tax payments within India. Furthermore, the ED alleges that Vivo India engaged in money laundering to destabilize India’s financial system.
In response, Vivo-India has vehemently denied these charges, presenting its case before the Delhi High Court. The company maintains its innocence, asserting that it has not laundered money or committed financial terrorism.
The company contends that it has, in fact, “contributed greatly towards the financial integrity and economic stability” of India.