New Delhi, Dec 26 Vivo China through Vivo India created an elaborate network of companies under a corporate veil and acquired proceeds of crime (PoC) to the tune of over Rs 20,000 crore, the Enforcement Directorate (ED) probe has revealed.
The details were revealed in the charge sheet filed by the ED before a court here on December 7.
The charge sheet, which has been viewed by IANS, claimed, “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.
“In other words, all the SDCs are controlled by Vivo India which in turn are controlled by Vivo China.
The ED alleged that the PoC acquired were then siphoned off by Vivo India to “overseas trading companies” many of which are in control of Vivo China.
Those named in the charge sheet, filed before a special court on December 7, include Rai, Guangwen Kyang alias Andrew Kuang (a Chinese national who allegedly played a key role in Vivo’s money laundering activities), Garg and Malik (statutory auditor of Lava). Vivo as a company has also been named as an accused in the charge sheet.
They have been charged under the Prevention of Money Laundering Act (PMLA).
The ED probe that began in 2022 has revealed that the Chinese phone manufacturer had incorporated 19 more companies in various cities after its entry into India in 2014.
These companies had Chinese nationals as their directors and/or shareholders and controlled the complete supply chain of Vivo Mobiles in India.
A Delhi court recently sent three arrested top executives of the company to three-day ED custody.
On December 23, the ED arrested the three accused -- Vivo India interim CEO Hong Xuquan, chief financial officer (CFO) Harinder Dahiya and consultant Hemant Munjal -- in connection with its probe.
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