Vivo China, operating through Vivo India, has been implicated in an extensive network of companies concealed under a corporate veil, allegedly acquiring proceeds of crime (PoC) exceeding Rs 20,000 crore, according to findings from an Enforcement Directorate (ED) probe.
As detailed in the charge sheet filed on December 7 and reviewed by IANS, Vivo China established a complex structure of companies through Vivo India. The charge sheet states, "Vivo China, through Vivo India, created an elaborate network of companies under a corporate veil, and on piercing the corporate veil, the real beneficial ownership and control of all these entities is revealed."
The charge sheet further alleges that Vivo India, controlling all Strategic Development Centres (SDCs), obtained PoC amounting to Rs 2,02,41,17,72,292.89. The ED contends that Vivo India subsequently transferred the acquired PoC to "overseas trading companies," many of which are purportedly under the control of Vivo China.
Individuals named in the charge sheet, filed under the Prevention of Money Laundering Act (PMLA), include Rai, Guangwen Kyang (also known as Andrew Kuang), Garg, and Malik (statutory auditor of Lava). Vivo as a company has also been accused in the charge sheet.
The ED's investigation, initiated in 2022, uncovered that the Chinese phone manufacturer established 19 additional companies in various Indian cities after entering the Indian market in 2014. These companies allegedly had Chinese nationals as directors and/or shareholders, overseeing the complete supply chain of Vivo Mobiles in India.
Recently, a Delhi court placed three top executives of the company in three-day ED custody. On December 23, the ED arrested Vivo India interim CEO Hong Xuquan, Chief Financial Officer (CFO) Harinder Dahiya, and consultant Hemant Munjal in connection with the ongoing probe.
(With Agency Inputs)
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