India’s monetary crime company on Tuesday arrested 4 trade executives together with one Chinese nationwide working for smartphone maker Vivo in India in a case of alleged cash laundering, in accordance with authorized papers and attorneys engaged on the case.
The arrest provides to the authorized troubles of the Chinese telephone maker in India and comes amid rising tensions between Beijing and New Delhi over points starting from border disputes to India’s growing scrutiny of Chinese companies and funding.
Vivo stated in an announcement it “firmly adheres to its ethical principles and remains dedicated to legal compliance. The recent arrest deeply concerns us. We will exercise all available legal options”.
India’s Enforcement Directorate (ED) didn’t instantly reply to requests for remark.
Earlier in the day, two sources advised Reuters that 4 Vivo staff had been arrested, however throughout a courtroom listening to the place executives had been produced attorneys stated just one Vivo worker, a Chinese nationwide recognized in authorized papers as Guanwen Kuang, was arrested.
Further particulars of the investigation weren’t instantly clear. The ED’s counsel, Manish Jain, sought 10 day custody for the arrested people, however the decide ordered solely three days.
The names of three different executives, and their affiliations, weren’t instantly clear.
The executives had been arrested in relation to an ongoing 2022 case the place the ED raided Vivo’s places of work and accused it of cash laundering, the primary of the sources stated.
Vivo has repeatedly denied the allegations. It has beforehand stated it cooperated with authorities to supply them with all required info and was “committed to be fully compliant with laws”.
Vivo is owned by China’s BBK Electronics, which additionally operates manufacturers comparable to Oppo and Realme in India. Vivo is the second largest smartphone model in India with a 17 p.c market share in shipments, trailing behind Samsung, in accordance with information from analysis agency Counterpoint.
In 2022, the ED blocked 119 financial institution accounts linked to Vivo’s India enterprise, however a courtroom later revoked the transfer.
Indian police even have formally accused Vivo of serving to switch funds illegally to a information portal underneath investigation on fees of spreading Chinese propaganda, Reuters reported final week. Vivo hasn’t commented on the matter.
Relations between India and China have more and more soured since a 2020 navy conflict on their disputed Himalayan border in which 20 Indian troopers and 4 Chinese troops had been killed.
Since then, India has banned tons of of Chinese apps together with TikTok, citing nationwide safety issues, and tightened scrutiny of incoming investments from its neighbour.
Recently, carmaker BYD’s proposal to speculate $1 billion (roughly Rs. 8,321 crore)to construct electrical automobiles and batteries in India confronted elevated scrutiny from New Delhi, forcing the carmaker to drop its plans, Reuters reported in July.
© Thomson Reuters 2023
