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 email@example.com, 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.
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