Vivo Mobiles India case, the Delhi court has sent Hari Om Rai, the Managing Director of Lava International, and three other accused to three days of Enforcement Directorate (ED) remand. The case is scheduled to be heard on October 13.
The ED has expressed its desire for a 10-day custody of all four accused, citing their evasive and non-cooperative behavior during questioning. The agency has raised serious concerns about various Chinese nationals traveling to sensitive areas of Jammu & Kashmir and Ladakh in violation of visa conditions.
The ED has alleged a criminal conspiracy aimed at utilizing Indian companies as a front to gain a foothold in India, in violation of Foreign Direct Investment (FDI) norms. A grave violation of employment visa norms has been found for office bearers of Vivo China and related companies in India.
The arrested Chinese national, Guangwen Kuang, is said to have helped create a mesh of companies under a corporate veil, which were controlled by Vivo China. Another Chinese national, Bin Lou, was the founding director in Vivo India, GPICPL, and other related entities.
According to the ED, Vivo China was the real controller of all related companies which were marketed before the public as Vivo Group companies. Dummy directors and shareholders were deployed to mask control of Vivo India as part of a well-crafted criminal conspiracy to circumvent legal compliances.
The shareholders and directors of GPICPL allegedly used forged driving licenses to conceal their real identity. The ED has found that Vivo Mobile Communications China was controlling the day-to-day business of Vivo India.
In a shocking revelation, it was found that Vivo Mobiles India remitted funds from India while no profits were shown in statutory filings from 2014-15 to 2019-20.
