Vivo Money Laundering case : The Enforcement Directorate intensifies its action, detaining senior executives, including Interim CEO, in the Vivo money laundering case.
New Delhi, 25 Dec (City Times) : In a significant development, the Enforcement Directorate (ED) has arrested three high-ranking officials of Chinese smartphone giant Vivo in connection with an alleged money laundering case, marking a new phase in the ongoing Vivo Money Laundering probe. The individuals taken into custody include Interim CEO of Vivo India, Hong Xuquan alias Terry, Chief Financial Officer (CFO) Harinder Dahiya, and consultant Hemant Munjal. The arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA), as reported by news agency.
This follows the earlier arrest of four individuals, including Hari Om Rai, MD of mobile company Lava International, Chinese national Guangwen alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik. They are currently in judicial custody, and the ED had filed a charge-sheet against them in a special PMLA court in Delhi, which the court has recently acknowledged.
Earlier this month, the ED filed its first charge sheet against Vivo India and others under relevant provisions of PMLA. The federal agency alleges that Vivo siphoned off a staggering Rs 1 lakh crore from India between 2014 and 2021, with the assistance of shell companies.
In October, reports emerged that Vivo India had established an intricate network of companies across the country using forged documents under the instructions of its Chinese parent company. The purpose was purportedly to deceive local government authorities. The ED claimed that 19 companies were set up locally after the inception of Vivo India in 2014, ultimately controlled by China’s Vivo Mobile Communication Co. The agency asserted that these companies were part of a “criminal conspiracy” to “utilize Indian companies as a front to get a foothold in the Indian territory,” a violation of foreign direct investment rules.
On December 23, the ED furthered its crackdown by arresting three additional executives, including the interim CEO Hong Xuquan alias Terry, underlining the gravity of the ongoing Vivo Money Laundering investigation.
Conclusion: The unfolding layers in the Vivo Money Laundering case bring to light the intricate financial dealings allegedly orchestrated by Vivo India in collaboration with its Chinese parent company. The comprehensive legal actions and charge sheets by the ED signal a robust response against financial irregularities, emphasizing the need for stringent scrutiny in the business operations of multinational corporations within the country. As the investigation deepens, the impact on corporate governance and financial transparency in the tech industry becomes increasingly profound. The ongoing probe holds significant implications for the trajectory of the Vivo brand in India and sets a precedent for dealing with alleged financial misconduct by multinational corporations in the country.
About Vivo : Vivo, a prominent Chinese smartphone manufacturer, entered the Indian market in 2014 and swiftly gained traction with its feature-rich devices. Over the years, Vivo positioned itself as a formidable player in the highly competitive smartphone market, offering a range of innovative and stylish smartphones catering to diverse consumer preferences.
However, recent developments have cast a shadow on the company’s operations in India, with allegations of money laundering and financial irregularities. The Enforcement Directorate’s intensive investigation into the Vivo Money Laundering case has put the spotlight on the company’s financial dealings, raising concerns about compliance with regulatory norms and corporate governance practices. As the probe unfolds, it not only poses challenges for Vivo but also prompts a broader discussion on the governance of multinational corporations operating in India’s dynamic business landscape.