New Delhi - The Enforcement Directorate (ED) arrested the Managing Director of Lava International, a Chinese national, a Chartered Accountant, and another individual in connection with an ongoing money-laundering investigation involving Chinese smartphone manufacturer Vivo.
According to official sources cited by PTI, those arrested have been taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).
The arrests come after the ED conducted a raid on the company and individuals associated with it back in July of the previous year. The agency had alleged the discovery of a substantial money laundering operation that implicated both Chinese nationals and multiple Indian companies.
At that time, the ED claimed that an astonishing amount of Rs 62,476 crore had been illicitly transferred by Vivo to China as an apparent effort to evade tax payments in India. In a related move in 2022, the ED had frozen 119 bank accounts linked to Vivo's India operations. However, this action was later overturned by a court.
The ED's actions against Vivo and its affiliated firms had escalated with multiple raids conducted across the country in July of the previous year.
Vivo has consistently denied any wrongdoing, maintaining its commitment to cooperating with authorities by providing all necessary information and ensuring full compliance with the law.
Vivo is a subsidiary of China's BBK Electronics, which also oversees brands like Oppo and Realme in India. According to data from the research firm Counterpoint, Vivo holds the second-largest share of the smartphone market in India, accounting for 17 percent of shipments, trailing behind Samsung.
Sources reveal that Vivo executives were summoned to the ED's Delhi office for questioning before being taken into custody. They are expected to appear in court later on Tuesday.
ED has formally accused Vivo of aiding in the illegal transfer of funds to a news portal currently under investigation for allegedly promoting Chinese propaganda. Reuters reported on this matter last week, though Vivo has refrained from commenting on the allegations.