PMLA case: ED custody of interim CEO of Vivo India, two others extended for two days
New Delhi: Patiala House Court on Tuesday extended the Enforcement Directorate custody of three Vivo-India executives by two days. Authorities are being investigated for money laundering in connection with the Chinese smartphone maker and others.
Three accused, including the interim CEO, were recently arrested by the Enforcement Directorate (ED) in the ongoing investigation related to money laundering probe by the central agency.
The accused, arrested by the Enforcement Directorate on December 22, 2023, were identified as Hong Xuquan alias Terry, interim CEO of Vivo India; Harinder Dahiya, Chief Financial Officer, Vivo India and Hemant Munjal, Advisor, Vivo.
On Tuesday, Additional Sessions Judge Aparna Swamy, after hearing the arguments of both the parties, decided to send the three accused on additional remand of 2 days to the ED.
Advocates Manish Jain and Simon Benjamin appreciated the Enforcement Directorate in the case and senior advocates Siddharth Aggarwal and Arvind Nayyar appeared for the accused persons in the case.
In this case, the Enforcement Directorate had arrested four accused including a Chinese national and the MD of Lava International in October.
Recently, Delhi’s Patiala House Court took cognizance of a prosecution complaint (chargesheet) filed by the Enforcement Directorate in connection with the Prevention of Money Laundering Act (PMLA) case related to Chinese mobile company Vivo, involving Chinese national Guangwen Kuang, Lava International. Were. MD Hariom Rai, Nitin Garg and Rajan Malik have been booked under various sections of the Money Laundering Act.
According to sources, ED has also made Vivo company an accused in the case of allegedly defrauding the Government of India. It also said that the company has established a complex network in India.
According to the ED, some Chinese shareholders of Grand Prospect International Communication Pvt Ltd incorporated the company on the basis of forged identity documents and wrong addresses.
During the inquiry, some fraudulent activities were found by the Ministry of Corporate Affairs.
The ED said that the said company was not reported as a subsidiary of Vivo in the official records even though the said company publicly describes itself as a subsidiary of Vivo.
The ED further alleged that director and shareholder Zhang Jie used a false driving license to apply for a Director Identification Number (DIN) to provide his Shillong address and also used his fake driving license to open a bank account. .
Along with the allegation of fraud, an FIR under section 417/120B/420 IPC was registered at Kalkaji police station in South East Delhi and another FIR under section 417/420/468/471/120B IPC by the Economic Offenses Wing. Was also recorded. , Delhi Police, based on a complaint filed by Manjeet Singh, the then Deputy Registrar of Companies, Ministry of Corporate Affairs, NCT Delhi.
The ED further alleged that soon after the incorporation of Vivo India, 19 more companies, including GPICPL, were incorporated across India, which were completely controlled by Chinese nationals.
Accused Bin Luo was the founder and first director of Vivo India, GPICPL and all other 18 entities at the time of their incorporation and accused Nitin Garg had assisted in the incorporation of most of the Vivo group companies.
According to the Enforcement Directorate, raids were conducted on the premises of the accused on October 9 and cash worth more than Rs 10 lakh was seized and four accused were arrested, identified as Guangwen Qiang alias Andrew Kuang, a Chinese national, owner of Hari Om Rai. It has been done in the form. Lava International MD Rajan Malik and chartered accountant Nitin Garg.
Investigation revealed that the PMLA investigation was initiated by the ED by registering a money laundering case on February 3, 2022.
