3 officers of Chinese company Vivo, one officer of Lava arrested: Action taken in money laundering case, searches were conducted at 48 locations last year

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.

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.