ED Arrests 4 in Vivo Money Laundering Case

On Tuesday, the Enforcement Directorate (ED) arrested four people in connection with a money laundering probe against Chinese smartphone maker Vivo. Lava International MD Hari Om Rai, a Chinese national, a Chartered Accountant and another person were taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).

The four arrested have been identified as Andrew Kuang and chartered accountants Nitin Garg and Rajan Malik. They have been sent to three-day ED custody by Additional Sessions Judge Devender Kumar Jangala, The Indian Express reported. They are expected to be produced before a court where the ED will seek their custody.

In a statement, Vivo said it "firmly adheres to its ethical principles and remains dedicated to legal compliance. The recent arrest deeply concerns us. We will exercise all available legal options."

The ED had raided the company in July last year, claiming to have busted a major money laundering racket involving Chinese nationals and multiple Indian companies.

The ED has also alleged that Vivo employees worked without appropriate visas. The ED had raided Vivo and its employees in July last year over allegations of money laundering by the smartphone maker. The ED had then alleged that Rs 62,476 crore was "illegally transferred by Vivo to China in order to avoid payment of taxes in India". The agency blocked 119 bank accounts linked to Vivo's India business, but a court later revoked the move.