New Delhi: The Enforcement Directorate has submitted its initial charge sheet related to the money laundering investigation against the Chinese smartphone manufacturer Vivo and others, according to official sources. The filing occurred in a special court, citing criminal sections of the Prevention of Money Laundering Act (PMLA), with Vivo-India named as an accused alongside individuals previously arrested in the case. The Enforcement Directorate had apprehended four individuals, including Hari Om Rai, the MD of Lava International mobile company, a Chinese national, and two Chartered Accountants.
The agency asserted that the actions of these individuals facilitated Vivo-India in making wrongful gains detrimental to India’s economic sovereignty. The ED conducted raids in July of the previous year, alleging a substantial illegal transfer of ₹62,476 crore by Vivo-India to China to evade Indian taxes. Vivo-India maintained its commitment to ethical principles and legal compliance. Rai, denying any association with Vivo since 2014, clarified that talks for a joint venture occurred a decade ago. The ED initiated its probe based on a Delhi Police FIR against an associated company of Vivo, Grand Prospect International Communication Pvt Ltd (GPICPL).
The police complaint, filed by the Corporate Affairs Ministry, accused GPICPL and its shareholders of using forged identification documents during incorporation in December 2014.
The ED’s money laundering investigation revealed that Vivo remitted over Rs 1 lakh crore outside India since 2014 through trading companies, concealing the control of Vivo China over these Indian entities. Vivo reported zero profits from 2014 to 2020, with no income taxes paid in India.
