Vivo India challenged the integrity and sovereignty of India: ED to Delhi HC

The Enforcement Directorate (ED) has told the Delhi High Court through an affidavit that Vivo India has engaged in money laundering in order to destabilize the financial system and to challenge the integrity and sovereignty of the country.

The affidavit was filed in the Delhi High Court last week. The anti-money laundering agency said in the affidavit that it is investigating the suspicious financial transactions of 22 firms owned by Hong Kong-based foreigners and corporations. These companies transferred huge funds to China.

It is also investigating a money laundering case against Grand Prospect International Communication Private Limited, a distributor of Vivo based in Jammu and Kashmir. The firm was reportedly formed on the basis of forged documents and claimed to be a subsidiary of Vivo India. The company used an email address, indicates an association with Vivo India and is registered with the Ministry of Corporate Affairs.

The Delhi-based accounting firm had helped set up the J&K-based firm. This company has been in contact with Vivo India since 2014.

The ED has mentioned that Vivo India has set up 22 companies in different states which are said to have been money laundering. Delhi-based CA firm helped Vivo India set up 22 companies.

Previously, Vivo India had said that they follow all the rules of the country of India.

The top managers of the Chinese smartphone company Vivo, the directors Zhengshen Ou and Zhang Jie, had fled India via Nepal.

In February, the ED initiated anti-money laundering proceedings against them based on an FIR filed at Kalkaji Police Station in Delhi under Sections 417, 120B and 420 of the IPC, 1860 against Grand Prospect International Communication Private Limited (GPICPL) and its director, shareholders and certifying professionals etc. on the basis of a complaint filed by the Ministry of Corporate Affairs.

According to FIR, GPICPL and its shareholders had used fake identification documents and fake addresses at the time of incorporation. The allegations proved true as the investigation revealed that the address mentioned by the directors of GPICPL did not belong to them but was a government building and the home of a senior bureaucrat.

ED said Vivo India remitted Rs 62,476 crore out of the total sales proceeds of Rs 1,25,185 crore. ie almost 50 percent of sales from India, mainly to China.



(Only the headline and image of this report may have been edited by the staff at Business Standard; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has endeavored to provide timely information and commentary on developments that are of interest to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback to improve what we offer has only strengthened our resolve and commitment to these ideals. Even during these trying times resulting from Covid-19, we remain committed to keeping you informed and informed with credible news, authoritative views and incisive commentary on timely and relevant issues.
However, we have a request.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to bring you higher quality content. Our subscription model has had an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve our goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are dedicated to.

Support quality journalism and Subscribe to Business Standard.

digital editor

Leave a Reply

Your email address will not be published.