The Enforcement Directorate (ED) has filed its main prosecution complaint (Chargesheet) related to a case under the Prevention of Money Laundering Act (PMLA) involving the Chinese mobile phone company Vivo at Delhi’s Patiala House Court.
The chargesheet has been filed against Chinese national Guangwen Kuang, Andrew, the MD of Lava International Hariom Rai, and two other individuals, Nitin Garg and Rajan Malik, under various sections of the Money Laundering Act. Presently, all the accused in the matter are in judicial custody.
According to sources, the ED has implicated the VIVO company as an accused in the case, alleging cheating against the Government of India. The ED contends that the company has established a complex network in the country.
Recently, a trial court issued a fresh notice to the jail superintendent, directing the filing of a medical status report on the cardiology and gastroenterology of Hari Om Rai, the Managing Director of Lava International, who is presently in judicial custody.
Hari Om Rai, along with other accused, was arrested by the Enforcement Directorate in connection with a PMLA case linked to the Chinese mobile company Vivo. Rai, seeking bail on medical grounds, asserted in his plea that the allegations against him were false and baseless. He clarified that he had no direct or indirect control over Vivo’s business, nor had he derived any monetary benefit from transactions with Vivo or any entity allegedly associated with Vivo.
Rai explained that negotiations for a joint venture with Vivo in 2013 did not materialise, and since then, he had no involvement with Vivo China. The plea emphasised that over the years, the international relations between India and China may have strained, but this should not imply an offence committed when friendly business relations existed.
The ED alleges that certain Chinese shareholders incorporated Grand Prospect International Communication Private Ltd. based on forged identification documents and falsified addresses. Investigations found fraudulent activities, and the company, projected as a subsidiary of Vivo, was not reported as such in official records.
ED further claimed that the Director and Share Holder Zhang Jie used a false driving licence to apply for a Director Identification Number (DIN) with a fake address. Fraudulent activities led to FIRs being registered by the Delhi Police.
The investigation revealed that after the incorporation of Vivo, India, 19 more companies, including GPICPL, were established, all controlled by Chinese nationals. The accused, Bin Luo, and Nitin Garg, were involved in the incorporation of these companies.
In October, raids were conducted, resulting in the seizure of cash over Rs 10 lakh, and four accused, including Guangwen Kyang, Hari Om Rai, Rajan Malik, and Nitin Garg, were arrested. The ED initiated the PMLA investigation on February 3, 2022.