Vivo money laundering case: Delhi court extends ED custody of Vivo India interim CEO, two others by one day

New Delhi [India], December 28 (ANI): The Patiala House Court in New Delhi on Thursday extended the ED Custody of Hong Xuquan, the Interim CEO of Vivo India and two others by one day in a money laundering case.

Vacation Session Judge Chhavi Kapoor extended the ED custody of Hong Xuquan, Harinder Dahiya and Hemant Munjal till Friday.

ED sought 5 days of further custody of all three accused.

Agency’s Special Public Prosecutors (SPP) Manish Jain and Simon Benjamin argued that the summons have been issued to some people. They have to be confronted with the accused persons.

The data recovered from Emails of accused persons also have to be confronted with the accused persons and recorded voluminously. They need time to investigate the matter, SPPs argued.

On the other hand, senior advocate Siddharth Agarwal raised the issue of illegal arrest and submitted that an inquiry was conducted on the order of the predecessor court. The court also provided a copy of the inquiry report.

The court noted that the judicial file was not received from the predecessor court.

After hearing the submissions court expressed its opinion saying that the judicial file had not been received from the predecessor court. In this situation one day police custody or judicial custody can be granted.

They were produced after the expiry of two days. Earlier, they were remanded in three days of custody. They were arrested on December 22, 2023.

Senior advocate submitted that On December 7, 2023, the Prosecution complaint was filed. The accused were arrested on December 22. The first remand was granted on December 23.

The accused were lifted on the evening of December 21, 2023. Taken to three different locations in ED vehicle and then to the office of ED, Sr. Advocate submitted.

The court said that the accused may be sent to a day judicial remand as the judicial file is not there. Let the file come.

The matter of personal liberty may be dealt with by the concerned court familiar with the facts of the case, senior advocate submitted.

The defence counsels also submitted that Every time they ask for an extension for custody, the bar is higher. There is no ground for extending the custody remand.

Digital data is already there. The accused have been in custody for the last five days, defence counsel argued.

On December 26, they said the accused had to be confronted with the digital data. The application is the same. They have not mentioned the quantity of data, how many guga bytes, and whether any disc has been used, defence counsel argued.

The court on December 26 extended the Enforcement Directorate custody of three Vivo-India executives by two days.

The executives are being investigated for money laundering in connection with the Chinese smartphone maker and others.

The three accused, including the interim CEO, were arrested by the Enforcement Directorate (ED) in an ongoing investigation related to a money laundering probe by the central agency.

The accused, who were arrested by the Enforcement Directorate on December 22, 2023, were identified as Hong Xuquan alias Terry, interim CEO of VIVO India; Harinder Dahiya, Chief Financial Officer of VIVO India and Hemant Munjal, VIVO’s consultant.

Advocate Manish Jain and Simon Benjamin the Enforcement Directorate in the matter and Senior Advocates Siddharth Aggarwal and Arvind Nayyar appeared for the accused persons in the matter.

In this case, the Enforcement Directorate arrested four accused in October, including a Chinese national and the MD of Lava International.

Recently, the Patiala House Court of Delhi took cognizance of a prosecution complaint (chargesheet) filed by the Enforcement Directorate in connection with a Prevention of Money Laundering Act (PMLA) case related to the Chinese mobile company Vivo involving Chinese national Guangwen Kuang, Lava International’s MD Hariom Rai, Nitin Garg and Rajan Malik under the different sections of the Money Laundering Act.

According to the sources, ED has also named VIVO Company as an accused in the matter of 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 shareholder 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 9 and seized cash amounting to more than Rs 10 lakhs and arrested four accused, who have been identified as Guangwen Kyang alias Andrew Kuang, a 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.