NEW DELHI :Vivo India’s interim chief govt officer (CEO) Hong Xuquan, chief monetary officer Harinder Dahiya and marketing consultant Hemant Munjal had been arrested by Enforcement Directorate (ED) on expenses of cash laundering and remanded to custody by a periods decide in Patiala Home Courtroom for 3 days.
The order was issued on the grounds that the executives held vital positions, performed a vital function in buying ₹20,241 crore as proceeds of crime, and that the executives weren’t cooperating with the authorities. Interim CEO Hong Xuquan was cited as a witness within the earlier grievance filed by the enforcement physique earlier this month. ED stated the custodial interrogation of the three accused was required for tracing and figuring out the cash path of the proceeds of crime. Mint has seen a duplicate of the order issued by the court docket.
ED cited the involvement of Dahiya for concealing useful possession of Vivo India and that the particular person was conscious of the advanced construction created by Vivo China with an intent to siphon off funds overseas.
The court docket additionally directed ED to conduct an inquiry into claims by the accused that the three executives have been in ED’s custody since 21 December.
“We’re deeply alarmed by the present motion of the authorities. The latest arrests show continued harassment and as such induce an setting of uncertainty amongst the broader trade panorama. We’re resolute in utilizing all authorized avenues to deal with and problem these accusations,” a Vivo spokesperson stated in a press release on Sunday.
The high-profile arrests comply with the arrests of 4 trade executives in October, together with Lava Worldwide managing director Hari Om Rai, chartered accountants Nitin Garg and Rajan Malik, and Chinese language nationwide Guangwen Kyang, alias Andrew Kuang, allegedly related to wrongdoings by the Chinese language smartphone maker in India. The 4 executives are in judicial custody. ED filed a chargesheet following their arrests on 6 December and grievance that was filed earlier than a particular court docket below the legal sections of the Prevention of Cash Laundering Act (PMLA).
The Indian company raided Vivo India and related individuals in July final 12 months, on the grounds that the corporate was a part of the money-laundering racket involving Chinese language nationals and a number of Indian firms. ED additionally alleged that ₹62,476 crore was “illegally” transferred by Vivo India to China to keep away from fee of taxes in India.
The company had additionally instructed the court docket that ₹1.07 trillion was remitted exterior India by Vivo to some buying and selling firms managed by its Chinese language dad or mum, in response to a Reuters report on 13 October.
At the moment, the corporate stated it “firmly adheres to its moral rules and stays devoted to authorized compliance”.
Chinese language corporations have been below the scanner of the probe company since 2020 when Delhi tightened curbs on incoming funding and banned lots of of Chinese language apps following border clashes.
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