A Patiala House Court of Delhi has extended the judicial custody of four accused individuals, involved in a money laundering case related to Chinese smartphone maker Vivo, till December 7.
The accused are Lava International MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang and chartered accountants Nitin Garg and Rajan Malik.
In connection with the matter, Vivo has consistently denied the allegations and its spokesperson said, “We will pursue necessary and appropriate legal recourse,” as per Business Standard report.
On Thursday (November 23), Advocate Nitesh Rana, representing Rai, objected to the ED’s request for an extension of their judicial custody, arguing that it should not be a routine or automatic procedure.
Rana asserted, “There is no fresh evidence to support an extension of custody. The application for custody seems routine, and there’s no accusation of non-cooperation against Hari Om Rai.”
As per the ED, specific Chinese shareholders of Grand Prospect International Communication Private Ltd. established the company using forged identification documents and fabricated addresses.
ED further alleged that soon after the incorporation of Vivo, India, 19 more companies including GPICPL were incorporated across India, completely controlled by Chinese Nationals.
Accused Bin Luo served as the founding and initial Director of Vivo India, GPICPL, and 18 other entities during their incorporation. Nitin Garg, another accused, aided in establishing most companies within the Vivo Group.
As per the Enforcement Directorate, raids were conducted on the accused’s premises on October 9, resulting in the seizure of cash exceeding INR 10 lakhs. Four individuals were arrested: Guangwen Kyang, also known as Andrew Kuang (a Chinese National), Hari Om Rai (MD of Lava International), Rajan Malik, and Nitin Garg (a Chartered Accountant).
In October, the Delhi High Court dismissed a petition filed by smartphone manufacturer Vivo, challenging the order that had sent its Chinese employee to the custody of the Enforcement Directorate (ED).
Recently, ED conducted raids at several locations linked to Vivo and several of its associate companies. The agency arrested four executives of the Chinese smartphone maker, including the Chinese national, for flouting money laundering norms.
ED claims that the Chinese company allegedly transferred proceeds to the tune of INR 62,476 Cr out of India to avoid tax payments in the country. In the ensuing conflict, the directorate froze the company’s bank account as it sought relief through legal channels.
This comes at a time when a slew of Chinese companies, especially smartphone makers OPPO and Xiaomi, are under the radar of authorities for allegations that span tax evasion and money laundering.
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