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ED arrested 4 officials of Chinese company Vivo | Action taken in money laundering case, searches were conducted at 48 locations last year

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New Delhi9 minutes ago

Vivo Mobiles was established in India on 1 August 2014. -file photo

The Enforcement Directorate (ED) on Tuesday arrested three officials of Chinese company Vivo Mobile and one of Lava. This arrest has been made in money laundering case.

News agency IANS reported that the arrested officials include Chinese citizen Guangwen Qiang, Lava International MD Hariom Rai, besides chartered accountants Rajan Malik and Nitin Garg. About a year ago, the ED had searched Vivo Mobiles and its 23 associate companies at 48 locations across the country, after which this arrest action was taken.

Created many companies to save tax and sent money to China
ED alleges that several companies were incorporated in India with the initial objective of illegally transferring funds to China. Additionally, the investigation revealed that Vivo Mobiles India transferred almost half of its sales income (about Rs 1.25 lakh crore) to China. This was done to save tax.

In 2022, ED had searched Vivo Mobiles and its 23 associated companies at 48 locations across the country.

Case was registered on the basis of FIR of Delhi Police
Delhi Police had registered a case under sections 417, 120B and 420 at Kalkaji police station against Vivo’s associate company Grand Prospect International Communication Private Limited (GPICPL), its directors, shareholders and certifying professionals. On the basis of this FIR, ED registered a case of money laundering on 3 February 2022 and started its investigation.

Vivo Mobiles was established on 1 August 2014.
According to the ED, Vivo Mobiles India Pvt Ltd was incorporated on August 1, 2014 as a subsidiary of Hong Kong-based company Multi Accord Ltd and was registered at ROC Delhi.

Vivo’s three Chinese executives left the country
GPICPL was founded by CA Nitin Garg, Zhengshen Ou, Bin Lu and Zhang Jie. It was registered at ROC Shimla on 3 December 2014. Bin Lu left India on 26 April 2018. Zhengshen Ou and Zhang Jie also left India in 2021.

Chinese companies dominate the phone market
Chinese companies dominate the mobile market in the country. Recently, IT Minister Rajiv Chandrashekhar had said that the cumulative business of Chinese mobile handset companies in India is estimated to be Rs 1.5 lakh crore in 2021-22.

This post originally appeared on www.bhaskar.com

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