New Delhi: Vivo Mobile India Private Limited since its inception in India in 2014 remitted funds to the tune of over Rs 70,000 crores out of the total funds accumulated by them through sale of goods, the Enforcement Directorate (ED) probe in the money laundering case has found.
The details were revealed in the charge sheet filed by the financial probe agency against Vivo India.
According to the ED charge sheet, seen by IANS, “Vivo Mobile India Pvt Ltd since its inception in 2014 remitted Rs 7,08,37,25,17,191.04 out of India out of the Rs 7,16,25,02,26,650.17 (Over Rs 70,000 crore) accumulated by them through sale of goods.”
The ED claimed that the imports were made by Vivo India from entities based in Hong Kong, Samoa and British Virgin Islands.
It said, “These foreign companies are hired by Vivo India and are termed as ‘Trading Companies’. Many of these overseas companies are found to be owned or controlled by Vivo China, which establishes the facts that Vivo India has siphoned off thousands of crores of foreign currency to its beneficial owner Vivo China.”
Mentioning the role of Hari Om Rai, Managing Director of Lava International Limited, the ED said, “During the probe, it was found that Vivo China with the active assistance of Rai, used an Indian company — Labquest Engineering Private Ltd as a front for establishing their network of companies in India and for carrying out activities which were not permitted otherwise.”
It said, “Vivo China controlled and monopolised all the operations of Vivo Mobiles in India through Vivo India, which in turn controlled and monopolised the operations of 23 companies SDCs of Vivo.
“All these companies were controlled and operated by the Chinese management of these companies,” the ED claimed.
The ED said that all the 23 companies were incorporated by Vivo China in India with the help of Rai; Rajan Malik and Nitin Garg (chartered accountants) and these companies are the exclusive distributor of Vivo phones and accessories.
The ED further said that many of the Chinese persons employed with Vivo India and SDCs were associated with Vivo China and there is complete economic control of Vivo India over the finances of these SDCs, which on paper have been projected as independent legal entities in the statutory compliances made before the Indian government.
The ED probe also found that the Vivo group companies employees communicated through various Chinese applications – WeChat, DingTalk, V-Chat and despite these companies operating in India, their data was not maintained in India and it was found that their data was maintained in the servers in China, which is not accessible to Indian authorities.
The ED probe also found grave violation of visa rules for entry into India by or in relation to office bearers of Vivo China and its related companies have been also been found.
“Chinese nationals submitted false information before the Indian Embassy or Mission in China for getting a visa for their travel to India which is a matter of ‘grave’ ‘national security concern’,” the ED alleged.
It also said that to circumvent the verification and scrutiny from Indian government authorities, these Chinese nationals used an Indian entity — Lava International Limited — to get invitation letters to avoid any suspicion.
Those named in the charge sheet, filed before a special court in Delhi on December 7, include Rai, Guangwen Kyang alias Andrew Kuang (a Chinese national who allegedly played a key role in Vivo’s money laundering activities), Garg and Malik (statutory auditors of Lava). Vivo as a company has also been named as an accused in the charge sheet.
They have been charged under Prevention of Money Laundering Act (PMLA).
Delhi court extends two days ED custody
A Delhi court on Tuesday extended by two days the ED custody of three Vivo-India executives in a money laundering case against the Chinese smartphone maker and others.
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 Enforcement Directorate.
The accused were produced before the court on the expiry of their three-day ED custody granted earlier.
The ED sought their remand for five days, claiming they were required to be confronted with the other accused arrested in the case earlier.
China had said on Monday it will provide consular protection and assistance to the arrested employees working for smartphone maker Vivo in India and expressed its firm backing to the Chinese businesses in protecting their lawful rights and interests.
The federal anti-money laundering 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.
On December 23, the ED arrested three accused — Vivo India interim CEO Hong Xuquan, Vivo chief financial officer (CFO) Harinder Dahiya and consultant Hemant Munjal in connection with its probe. They are in judicial custody at present.
(With inputs from agencies)