1, March, 2024
HomeIndiaED Files 1st Charge Sheet in Money Laundering Case Against Vivo - Key Details Revealed

ED Files 1st Charge Sheet in Money Laundering Case Against Vivo – Key Details Revealed

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The Enforcement Directorate (ED) has taken a significant step in the ongoing money laundering investigation involving Chinese smartphone manufacturer Vivo. The ED filed its inaugural charge sheet, marking a crucial development in the case. The charge sheet, submitted in a special court, invokes sections of the Prevention of Money Laundering Act (PMLA) against Vivo and key individuals, including Lava International managing director Hari Om Rai.

Read Also | Government Banks Recover Rs. 15,183 Crore, ED’s Actions Combat Money Laundering

Reports indicate that Vivo-India has been identified as an accused entity, alongside individuals previously arrested in connection with the case. The four individuals arrested include Hari Om Rai of Lava, Chinese national Guangwen (also known as Andrew Kuang), and Chartered Accountants Nitin Garg and Rajan Malik. The ED alleges that significant funds, approximately ₹62,476 crore, were remitted out of India, with almost 50% of the turnover going to China. The purpose of these remittances was purportedly to declare substantial losses in Indian companies, ultimately evading taxes in India.

The ED had conducted raids on Vivo-India and affiliated individuals in July of the previous year, uncovering what it described as a substantial money laundering network involving Chinese nationals and various Indian companies. The agency raided over 48 locations, including Vivo premises and its associated firms like Grand Prospect International Communication Pvt Ltd (GPICPL).

In a recent court statement, Hari Om Rai asserted that his association with Vivo and its representatives ended in 2014, denying any link to the alleged proceeds of crime. Vivo Mobiles India, a subsidiary of Hong Kong-based Multi Accord, was incorporated in 2014. The ED revealed that GPICPL was established by Zhengshen Ou, Bin Lou, and Zhang Jie, with assistance from Chartered Accountant Nitin Garg. According to the ED, Bin Lou departed India in 2018, while Zhengshen Ou and Zhang Jie left in 2021.

Read Also | ED Officials Arrested Tamil Nadu Minister V. Senthil Balaji for Alleged Money Laundering

The probe agency further detailed that Bin Lou, an ex-director of Vivo, had incorporated multiple firms across the country, totaling 18 companies around the same time as Vivo’s incorporation in 2014-15. Another Chinese national, Zhixin Wei, incorporated an additional four companies shortly thereafter.

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