Enforcement Directorate Files First Charge Sheet Against Chinese Smartphone Maker Vivo In Money Laundering Case

The Enforcement Directorate has filed its first charge sheet in connection with the money laundering investigation against Chinese smartphone manufacturer Vivo and several others.

The prosecution complaint was filed before a special court in Delhi on Wednesday under the criminal sections of the Prevention of Money Laundering Act (PMLA).

Vivo-India, along with those arrested in the case, has been named as an accused in the ED charge sheet, PTI reported citing sources.

The federal probe agency had arrested four people, including Hari Om Rai, the managing director of Lava International mobile company, and Guangwen alias Andrew Kuang, a Chinese national. The other two individuals arrested were Chartered Accountants Nitin Garg and Rajan Malik.

In its submission to a local court, the Enforcement Directorate (ED) had previously asserted that the alleged activities of the four individuals enabled Vivo-India to make wrongful gains that were detrimental to the economic sovereignty of India.

In July last year, a significant money laundering operation involving Chinese nationals and various Indian companies was reportedly uncovered following an Ed raid on Vivo-India and its linked persons

The company, however, claimed that it "firmly adheres to its ethical principles and remains dedicated to legal compliance".

Rai had recently told a local court that despite discussions about a potential joint venture in India with Vivo-India about ten years ago, he has had no connections with the Chinese company or its representatives since 2014.

"He has not derived any monetary benefit, nor has he engaged in any transaction with Vivo or any entity allegedly related to Vivo, let alone having been associated with any alleged 'proceeds of crime'," Rai's lawyer told the court.

The agency filed an enforcement case information report (ECIR), the ED equivalent of a police FIR, on 3 February 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.