ED files chargesheet in money laundering case against Vivo
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Enforcement Directorate (ED) has filed its first chargesheet in connection with the money laundering case involving Chinese smartphone manufacturer Vivo, sources told PTI on Thursday.
This prosecution complaint was submitted to a special court, citing violations under the criminal sections of the Prevention of Money Laundering Act (PMLA).
Vivo India has been named an accused apart from those arrested in this case.
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Managing Director of Lava mobile company and others detained
As part of this inquiry, the federal probe agency has detained four individuals. Among them is Hari Om Rai, the Managing Director of Lava International mobile company.
The other arrested individuals include Chinese national Guangwen, known as Andrew Kuang, as well as Chartered Accountants Nitin Garg and Rajan Malik.
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Allegations made by ED
During the proceedings, the ED stated in its remand papers before a local court that the actions of the aforementioned individuals facilitated Vivo India to make unfair profits, harming India's economic sovereignty.
The ED initially raided Vivo India and its associated individuals in July 2022.
The ED claimed to have busted a money laundering racket involving Chinese nationals and multiple Indian firms.
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Illicit transfers and ethical stand
The ED had alleged that Rs. 62,476 crore was "illegally" transferred by Vivo to China, to evade taxes in India.
Vivo said it "firmly adheres to its ethical principles and remains dedicated to legal compliance."
Rai, acknowledged that Lava was involved in talks for a joint venture with Vivo India 10 years ago but had no association with the Chinese firm after 2014.
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He had no involvement in transactions with Vivo: Rai's lawyer
Rai's legal counsel emphasized that he had no involvement in transactions with Vivo or related entities.
"He has not derived any monetary benefit, nor has he engaged in any transaction with Vivo or any entity allegedly related to Vivo, let alone having been associated with any alleged 'proceeds of crime'," Rai's lawyer told the court.
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Vivo associate used fake IDs and false addresses: FIR
The ED initiated an enforcement case information report (ECIR), equivalent to a police FIR, on February 3, after reviewing a Delhi Police FIR from December 2022.
The Corporate Affairs Ministry had filed the FIR, accusing Grand Prospect International Communication Pvt Ltd (GPICPL), a company linked to Vivo, and its shareholders of using fake IDs and false addresses during the company's incorporation in December 2014.