ED arrests four Vivo persons in money laundering case

The Enforcement Directorate (ED) has arrested the managing director (MD) of Lava International Mobile Company, a Chinese national, a chartered accountant (CA) and another person as part of its money laundering probe against Chinese smartphone maker Vivo. Official sources gave this information today. These four have been identified as Hari Om Rai, Managing Director of Lava International Mobile Company, Chinese national Guangwen Qiang, Chartered Accountant Nitin Garg and Rajan Malik. These four persons have been detained under the provisions of the Prevention of Money Laundering Act (PMLA).

Indian mobile phone manufacturer Lava International claims to have 1-2 percent share in the smartphone market.

An e-mail sent to Lava International Company seeking its comment did not elicit an immediate response. Indian mobile phone manufacturer Lava International claims to have 1-2 percent share in the smartphone market. The agency had raided the premises of Vivo and its affiliates in July last year and claimed to have busted a big money laundering gang involving Chinese nationals and several Indian companies. The ED had then alleged that Vivo ‘illegally’ sent Rs 62,476 crore to China to avoid paying taxes in India.

According to ED, it was found that these 23 companies transferred huge amounts of money to Vivo India.

This action against major Chinese company Vivo has been taken after the Federal Investigation Agency found that three Chinese nationals who had migrated from India during 2018-21 and another person from that country incorporated 23 companies in India. , in which he was also allegedly helped by CA Nitin Garg. According to ED, it was found that these 23 companies transferred huge amounts of money to Vivo India. Additionally, out of the total sale proceeds of Rs 1,25,185 crore, Vivo India repatriated Rs 62,476 crore or about 50 per cent of the turnover out of India, mainly to China.

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The action is being seen as part of the central government’s effort to crack down on Chinese companies

This action is being seen as part of the central government’s effort to crack down on Chinese companies. These companies, while operating here, are allegedly involved in serious financial crimes like money laundering and tax evasion. This step is also being seen as continued action against such companies and their associated Indian operators. This development took place amid the continuing military standoff between the two countries on the Line of Actual Control (LAC) in eastern Ladakh for three years. After the ED search on July 5, 2022, Vivo had said that it is a responsible company and is committed to fully comply with the laws.

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