New Delhi: The Enforcement Directorate (ED) has reportedly arrested three executives from the China-based mobile brand ‘Vivo’ and the Managing Director of the mobile brand ‘Lava’ in a money laundering case. The individuals in question are Guangwen Kyang, also known as Andrew Kuang, a Chinese national; Hari Om Rai, the MD of Lava International; Rajan Malik; and Nitin Garg, a Chartered Accountant (CA).
This action by the ED follows an extensive investigation carried out over a year ago, which included searches at 48 locations across India associated with vivo Mobiles India Private Limited and its 23 affiliated companies, including Grand Prospect International Communication Pvt Ltd (GPICPL).
The ED alleges that vivo Mobiles India Pvt Ltd was used to remit huge amounts of money to China in the form of royalties and other payments. The agency also claims that GPICPL was used to launder money and evade taxes.
The arrest of the Vivo executives and the Lava CEO is a significant development in the ED’s crackdown on money laundering and tax evasion by Chinese companies in India.