VIVO PMLA case: Court issues notice to Tihar authorities on Lava MD’s plea against shifting him to separate jail

New Delhi [India], December 17 (ANI): The Rouse Avenue Court has sought a report from Tihar Jail Authorities in regard to an application moved by Hariom Rai, Managing Director of Lava International against shifting him to a separate jail in Tihar.

ED recently arrested Chinese national Guangwen Kuang, Lava International’s MD Hariom Rai Nitin Garg and Rajan Malik under a different section of the Money Laundering Act. All the accused are presently in judicial custody in a money laundering probe against Chinese phone maker Vivo.

Advocate Nitesh Rana appeared for Hariom Rai, and submitted that shortly after the arrest of the Applicant, certain incidents giving rise to concerns about the safety and security of the Applicant occurred, which continue to date.

It was submitted that the grave threat continues to persist and there is a continual threat to the life and security of the Applicant.

Advocate Rana further submitted that applicant Hariom Rai was lodged in Jail No.7, Tihar Jail Complex, Delhi, to ensure his safety, and security and where he is being provided regular medical supervision to prevent any untoward incident leading to loss of his life.

The Applicant is now being transferred out of Jail No. 7. It was submitted, however, that there is no reason/ground for the said transfer to take place. It was also submitted that the shifting of the Applicant is likely to result in a situation where the safety and security of the Applicant are put in jeopardy.

Further, it was submitted that the transferring of the Applicant may result in further deterioration of his already grave medical conditions.

Noting the submissions, the trial court issued notice to the concerned superintendent of Tihar Jail Authority and sought the report in this regard.

Recently, the Enforcement Directorate has filed its main Prosecution Complaint (Chargesheet) in connection with a Prevention of Money Laundering Act (PMLA) case related to the Chinese mobile company Vivo in Patiala House Court of Delhi.

The Chargesheet has been filed against Chinese national Guangwen Kuang, Andrew, Lava International’s MD Hariom Rai Nitin Garg and Rajan Malik under the different sections of the Money Laundering Act. All the accused are presently in judicial custody in the matter.

According to the sources, ED has also named VIVO company as an accused on the matter for allegedly cheating the Government of India, it also stated that the company has set up an intricate network in India.

According to the ED, certain Chinese shareholders of Grand Prospect International Communication Private Ltd. incorporated the company based on forged identification documents and falsified addresses.

During the inquiry, certain fraudulent activities were found by the Ministry of Corporate Affairs. The said company was not reported as a subsidiary of Vivo in the official records, whereas the said company publicly projects itself to be a subsidiary of Vivo, said ED.

ED further alleged that Director and Share Holder Zhang Jie used a false driving licence to apply for a Director Identification Number (DIN) for giving his Shillong address and also used his fake driving licence to open the bank account. With the allegations of cheating, an FIR in Police Station Kalkaji, South East Delhi, was registered under Section 417/120B/420 IPC and another FIR was also registered under Section 417/420/468/471/120B IPC by the Economic Offence Wing, Delhi Police, based on the complaint filed by Manjit Singh, the then Deputy Registrar of Companies, Ministry of Corporate Affairs, NCT of Delhi.

ED further alleged that soon after the incorporation of Vivo, India, 19 more companies, including GPICPL, were incorporated across India, completely controlled by Chinese nationals. The accused, Bin Luo, was the founder and first director of Vivo India, GPICPL and all other 18 entities at the time of their incorporation and the accused, Nitin Garg, had assisted in the incorporation of most of the companies of Vivo Group.

According to the Enforcement Directorate, raids were on the premises of the accused on October 9th and seized cash amounting to more than Rs 10 lakhs and arrested four accused, who have been identified as Guangwen Kyang, aka Andrew Kuang, the Chinese national, Hari Om Rai, the MD of Lava International, Rajan Malik, and Nitin Garg, a Chartered Accountant.

The probe revealed that the PMLA investigation by ED was initiated by registering a money laundering case on February 3, 2022.