On October 10, 2023, India’s Enforcement Directorate (ED) arrested four executives in connection with a money laundering probe against Chinese smartphone-maker Vivo. The arrested individuals include:
- Guangwen Kyang, also known as Andrew Kuang, a Chinese national employed by Vivo
- Hari Om Rai, Managing Director of Lava International mobile company
- Rajan Malik, another company executive
- Nitin Garg, chartered accountant
The ED alleges that Vivo remitted Rs 62,476 crore (US$7.9 billion) to China in order to avoid payment of taxes in India. The agency also alleges that Vivo used fake invoices and shell companies to launder money.
The arrests come amid escalating tensions between India and China. In recent years, India has tightened scrutiny of Chinese businesses and investments in the country. In 2022, India banned several Chinese apps, including TikTok and WeChat.
Vivo has denied the allegations against it. The company has said that it is cooperating with the ED’s investigation and is committed to complying with all applicable laws and regulations.
The arrests of the Vivo executives are a significant development in the Indian government’s crackdown on money laundering and tax evasion. The case is also being closely watched by the international community, as it could have implications for other Chinese businesses operating in India.
It is important to note that the Vivo executives have not yet been convicted of any crime. They are presumed innocent until proven guilty.tunesharemore_vert