In the ongoing money laundering case involving smartphone manufacturer Vivo, China has issued a warning to India against discrimination towards its companies. The Chinese government pledges consular protection and assistance to two Chinese employees of Vivo who were recently arrested by the Enforcement Directorate (ED) as part of the probe.
Foreign Ministry Spokesperson Mao Ning emphasized China’s support for its companies, urging India not to discriminate. The arrested individuals include Vivo-India’s interim CEO Hong Xuquan alias Terry, CFO Harinder Dahiya, and consultant Hemant Munjal, taken into custody under the Prevention of Money Laundering Act (PMLA).
This follows earlier arrests in the case, involving the MD of Lava International Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik. The ED had alleged that their activities led to wrongful gains for Vivo-India, detrimental to India’s economic sovereignty.
The ED had previously conducted raids on Vivo-India and affiliated entities, claiming to expose a significant money laundering racket involving Chinese nationals and multiple Indian companies. The agency had asserted that Rs 62,476 crore was “illegally” transferred by Vivo-India to China to evade taxes in India.
This development aligns with the Indian government’s efforts to scrutinize Chinese entities involved in financial crimes like money laundering and tax evasion while operating in India.
Stay tuned for further updates on this evolving financial investigation.
