ED arrests vivo-India’s interim CEO, 2 others

New Delhi, December 23

The Enforcement Directorate has arrested three vivo-India executives in connection with its money laundering probe against the Chinese smartphone maker and some others, official sources said on Saturday.

Interim CEO of vivo-India Hong Xuquan, alias Terry — a Chinese national — chief financial officer (CFO) Harinder Dahiya and consultant Hemant Munjal have been taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA), they said. They were presented before a court which remanded them in ED custody for three days, the sources said. An email sent to a company spokesperson seeking comments on the development remained unanswered.

Rs 62K cr transferred illegally to evade tax

• In July last year, ED claimed to have busted a major money laundering racket involving Chinese nationals and multiple Indian companies
• 0It had alleged Rs 62,476 crore was ‘illegally’ transferred by vivo-India to China to evade payment of taxes in India
• Wrongful gains allegedly made by vivo-India were detrimental to the economic sovereignty of India, it had stated

The ED had earlier arrested four people — mobile company Lava International’s MD Hari Om Rai, Chinese national Guangwen, alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik — in the case. They are in judicial custody at present.

The agency had filed a chargesheet against the four and vivo-India before a special PMLA court in Delhi. The court recently took cognisance of the charge sheet. Special Judge Kiran Gupta summoned the accused on February 19.

The ED had claimed in its court papers presented for the earlier four arrestees their alleged activities enabled vivo-India to make wrongful gains that were detrimental to the economic sovereignty of India.

It had raided vivo-India and its linked persons in July last year and claimed to have busted a major money laundering racket involving Chinese nationals and multiple Indian companies. The ED had then alleged Rs 62,476 crore was “illegally” transferred by vivo-India to China to avoid payment of taxes in India.

The company had said it “firmly adheres to its ethical principles and remains dedicated to legal compliance”.

The action is seen as part of the Centre’s effort to tighten checks on Chinese entities that are allegedly indulging in serious financial crimes such as money laundering and tax evasion while operating here. These developments come amid a military stand-off between the two countries along the Line of Actual Control (LAC) in eastern Ladakh that began more than three years ago.