Vivo PMLA Case: Delhi Court Extends Custodial Remand of 3 Vivo-India Executives Including Interim CEO

Vivo PMLA case: The arrests were made in the case months after the four accused—Lava International MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, Chartered Accountants Nitin Garg and Rajan Malik—were arrested on October 10 this year.

New Delhi: In a major development, a Delhi court extended the Enforcement Directorate custody of three Vivo-India executives by two more days. It must be noted that the arrest is linked to the money laundering probe against the Chinese smartphone maker and others. The three accused were presented before the Special Judge Kiran Gupta of Patiala House Courts on the expiry date of earlier-granted three-day Enforcement Directorate (ED) custody, as per a report covered by news agency IANS.

The arrests were made in the case months after the four accused—Lava International MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, Chartered Accountants Nitin Garg and Rajan Malik—were arrested on October 10 this year.

“We are deeply alarmed by the current action of the authorities. The recent arrests demonstrate continued harassment and, as such, induce an environment of uncertainty in the wider industry landscape. We are resolute in using all legal avenues to address and challenge thesee accusations,” aVivo spokesperson was quoted saying in the report.

On the submission of senior counsels for the accused people that their clients were taken in the vehicle of ED on December 21 at around 6:55 pm and have not accompanied the ED officials voluntarily and are in custody of the agency since that day, the court had directed the Director of ED to conduct an inquiry in this regard and file the report on Tuesday along with the relevant CCTV footage, if any.

“The Director concerned shall also give a report as to the exact time since when the accused persons are in custody of ED and the time of their arrest,” the judge had said.

Court Takes Cognisance Of Charge Sheet

On December 20, the court took cognisance of the charge sheet filed by the financial probe agency, naming the four accused in it. The court summoned the accused, who are in judicial custody, on February 19, 2024.

Additional Sessions Judge Aparna Swami extended the custody of Interim CEO of Vivo-India Hong Xuquan alias Terry, Chief Financial Officer (CFO) Harinder Dahiya and consultant Hemant Munjal on an application moved by the ED.

The accused were produced before the court on the expiry of their three-day ED custody granted earlier.
The accused were taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).

The federal agency had earlier arrested four people—mobile company Lava International’s MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik—in the case.

In response to the ED’s allegation that there has been the recovery of several incriminating documents, a counsel for Guangwen argued, “The nature of such documents has not been specified and why these are relevant to the investigation was not apprised or substantiated by the ED. It was only submitted that they relate to the incorporation of companies, which is not an offence.”

The report also said that the arrests were made after the financial probe agency carried out searches at the premises of the four accused and recovered cash to the tune of Rs 10 lakh.

The ED action came more than a year after it carried out searches at 48 locations across the country belonging to Vivo Mobiles India Private Ltd. and its 23 associated companies, such as Grand Prospect International Communication Pvt. Ltd. (GPICPL), and claimed that it had busted a major money laundering racket involving Chinese nationals and multiple Indian firms.

According to the ED, Vivo Mobiles India Pvt. Ltd. was incorporated on August 1, 2014, as a subsidiary of Multi Accord Ltd., a Hong Kong-based company, and was registered at ROC Delhi. GPICPL was registered on December 3, 2014, at ROC Shimla, with registered addresses of Solan, Himachal Pradesh, and Gandhi Nagar, Jammu.

The PMLA investigation by the ED was initiated by registering a money laundering case on February 3, 2022, on the basis of an FIR registered at the Kalkaji police station in the national capital by Delhi Police against the GPICPL, its director, shareholders, certifying professionals, etc., on the basis of a complaint filed by the Ministry of Corporate Affairs.

(With inputs from agencies)