The Enforcement Directorate on Thursday filed its first chargesheet against Chinese smartphone maker Vivo and some others in connection with its money laundering probe, news agency PTI reported citing resources.
The prosecution complaint has been filed before a special court under the criminal sections of the Prevention of Money Laundering Act (PMLA) and vivo-India has been named an accused apart from those arrested in this case, the agency said.
ED has arrested four persons, including the MD of the Lava International mobile company Hari Om Rai. The others who were taken into custody were Chinese national Guangwen alias Andrew Kuang, Chartered Accountants Nitin Garg and Rajan Malik.
Earlier this week, the Patiala House Court of Delhi issued a fresh notice to the jail superintendent with directions to file a medical status report on cardiology and gastroenterology of Hari Om Rai, Managing Director of Lava International.
The ED claimed in its remand papers before a local court in New Delhi that the alleged activities of the four arrested enabled vivo-India to make wrongful gains that were detrimental to the economic sovereignty of India.
The probe agency raided vivo-India and its linked persons in July last year, claiming to have busted a major money laundering racket involving Chinese nationals and multiple Indian companies.
The ED had then alleged that a whopping ₹62,476 crore was “illegally” transferred by Vivo-India to China to avoid payment of taxes in India. At that time, the company said that it “firmly adheres to its ethical principles and remains dedicated to legal compliance.”
The Managing Director of Lava International, Hariom Rai had recently told a court that though his company and vivo-India were in talks to launch a joint venture in India a decade ago, he had nothing to do with the Chinese firm or its representatives since 2014.
Rai, has recently filed a bail petition in trial court citing medical grounds. He said has no direct or indirect control over Vivo’s business, nor has he derived any monetary benefit, nor has he engaged in any transaction with Vivo or any entity allegedly related to Vivo.
The agency filed an enforcement case information report (ECIR), the ED equivalent of a police FIR, on February 3 after studying a Delhi Police FIR of December last year against an associated company of vivo, Grand Prospect International Communication Pvt Ltd (GPICPL), its directors, shareholders and some others professionals.
The police complaint was filed by the Corporate Affairs Ministry alleging that GPICPL and its shareholders used “forged” identification documents and “falsified” addresses at the time of incorporation of the company in December 2014.
