Vivo Money Laundering Case: 7 Chinese Nationals Flee

At least seven Chinese nationals associated with Vivo India fled the country after the Enforcement Directorate (ED) carried out searches and issued summons to executives of the Chinese phone maker, which was allegedly involved in flouting foreign direct investment (FDI) norms, visa conditions and hiding its beneficial ownership to create proceeds of crime worth over 20,000 crores, according to a charge sheet filed by the federal agency.

- Neeraj Chauhan

The charge sheet against Vivo China, Vivo India, and 46 other entities and individuals was filed in the first week of December. A Delhi court took cognisance of the charge sheet last week.

Total seven people have been arrested so far in the case.

"Vivo China and other entities have resorted to violation of multiple laws of India to give effect to their mala fide intentions. Ultimately by way of violation of FDI policy, visa violations, cheating and forgery etc., Vivo group companies acquired Proceeds of Crime (PoC), which were subsequently used for expansion of Vivo footprints in the country and siphoning off the same to foreign companies which were also owned/controlled by Vivo China," said the charge sheet. HT has seen a copy.

The agency has estimated that since its inception in India in 2014 till March 2021, Vivo India remitted funds worth 270,837 crore out of 71,625 crore accumulated from the sale of phones and accessories.

Vivo China, to conceal its ownership of Vivo India, created an entity called Multi Accord in Hong Kong in February 2014, according to the charge sheet.

The shares of Multi Accord were acquired by Ye Liao (first CEO and shareholder of Vivo India) in May 2014. All the technology and manpower were provided by Vivo China to Vivo India and its state distributor agencies.