Money Laundering Case: ED Files Charge Sheet Against Vivo India
In connection with a money laundering case, the Enforcement Directorate (ED) has filed its first charge sheet against Chinese-origin smartphone company Vivo India Ltd, and others.
The financial probe agency filed a charge sheet in court against Guangwen Kyang a.k.a. Andrew Kuang, a Chinese national; Hari Om Rai, the MD of Lava International; Rajan Malik, and Nitin Garg, the Chartered Accountant.
The Court will take cognizance of the Charge sheet of 400-page. The ED arrested four persons on October 10. It was claimed that the alleged activities of the four enabled Vivo India to make wrongful gains that were detrimental to the economic sovereignty of India.
It was claimed that some companies were found to have transferred huge amounts of funds to Vivo India. It can be viewed that out of the total sale proceeds of Rs 1,25,185 crore, Vivo India remitted Rs 62,476 crore i.e., almost 50 per cent of the turnover out of India, mainly to China.
"These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India," the ED claimed.
After conducting multiple searches at different locations across the country, ED had seized 119 bank accounts of various entities with gross balance to the tune of Rs 465 crore including FDs to the tune of Rs 66 crore of Vivo India, 2 kg gold bars, and cash to the tune of approximately Rs 73 lakh.
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