Vivo money laundering case: China vows consular support to arrested employees; warns against discrimination
By Sunita Iyer | First Published Dec 25, 2023, 5:44 PM ISTForeign ministry spokesperson Mao Ning strongly urged India not to discriminate against Chinese companies and stated, "We are closely following the matter. The Chinese government firmly supports Chinese companies to safeguard their lawful rights and interests."
Two Chinese employees of smartphone manufacturer Vivo, who were recently arrested by the Enforcement Directorate (ED) in connection with a money laundering probe, will receive consular protection and assistance from Beijing. Foreign ministry spokesperson Mao Ning strongly urged India not to discriminate against Chinese companies and stated, "We are closely following the matter. The Chinese government firmly supports Chinese companies to safeguard their lawful rights and interests."
On December 23, the ED arrested three Vivo-India executives, including interim CEO Hong Xuquan (alias Terry), a Chinese national, Chief Financial Officer Harinder Dahiya, and consultant Hemant Munjal.
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Under the provisions of the Prevention of Money Laundering Act (PMLA), the trio has been taken into custody and is currently under the supervision of the Enforcement Directorate (ED).
The agency had previously arrested four individuals in connection with the case, including the MD of mobile company Lava International, Hari Om Rai, Chinese national Guangwen (alias Andrew Kuang), and chartered accountants Nitin Garg and Rajan Malik. These four individuals are presently in judicial custody.
In court documents submitted for the initial four arrestees, the ED asserted that their alleged activities facilitated Vivo-India in making wrongful gains, posing a threat to the economic sovereignty of India. In July of the previous year, the ED conducted raids on Vivo-India and associated individuals, claiming to have uncovered a significant money laundering network involving Chinese nationals and multiple Indian companies.
At that time, ED had accused Vivo-India of "illegally" transferring Rs 62,476 crore to China, purportedly to evade tax payments in India. This move is perceived as a component of the government's initiatives to enhance scrutiny on Chinese entities engaged in alleged financial malpractices such as money laundering and tax evasion within the Indian territory.
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