The Enforcement Directorate has apprehended the Managing Director of Lava International, a Chinese national, a Chartered Accountant, and another individual as part of its ongoing investigation into money laundering linked to the Chinese smartphone manufacturer Vivo.
The four individuals have been detained under the provisions of the Prevention of Money Laundering Act (PMLA), according to sources. They are expected to be presented before a local court, where the ED will request their custody.
In July of the previous year, the agency conducted a raid on the company and individuals associated with it, claiming to have uncovered a significant money laundering operation involving Chinese citizens and several Indian firms. At that time, the ED alleged that Vivo had “illegally” transferred a substantial sum of Rs 62,476 crore to China in an attempt to evade tax payments in India.
According to Hindustan Times, the agency had on July 5, 2022, raided Vivo Mobiles India Pvt Ltd and 23 firms linked to it.
At that time, ED said that a company associated with Vivo, GPICPL (M/s Grand Prospects International Communication Pvt. Ltd.) was registered Dec 3, 2014, at ROC Shimla, with registered addresses of Solan, Himachal Pradesh and Gandhinagar, Jammu. The said company was incorporated by Chinese citizens – Zhengshen Ou, Bin Lou and Zhang Jie with the help of Nitin Garg, CA. Bin Lou left India on April 26, 2018, while Zhengshen Ou and Zhang Jie left India in 2021.
(Additional info has been added to this PTI copy for context)
