ED Alleges Vivo’s Money Laundering Act As An Attempt Threatening Nation’s Integrity

India’s anti-money laundering watchdog Enforcement Directorate (ED) has alleged that the bank accounts of Vivo India are involved in money laundering and it is an attempt to destabilise the financial system of the country and threaten the integrity and sovereignty of the nation.

Last week, the agency filed an affidavit in the Delhi High Court against 22 companies related to the Indian unit of the Chinese company. It stated that Vivo laundered a ‘suspicious’ amount to China. “It is being investigated,” the affidavit stated. 

The ED also drew parallels between the activities of these companies and a Jammu and Kashmir-based Vivo distributor Grand Prospect International Communication Private Limited (GPICPL) that forged documents to claim to be a Vivo subsidiary. The paper trail for the current investigation also goes back to GPICPL’s December 2021 case.

The Delhi HC also recently refused Vivo any interim relief after ED alleged a money laundering/tax evasion on assets worth INR 62,476 Cr against the company. The ED has so far seized 119 bank accounts of various entities related to Vivo, with a gross balance to the tune of INR 465 Cr. The seized amount includes fixed deposits of up to INR 66 Cr, 2 kg gold bars, and cash of up to INR 73 Lakh. 

During the investigation, the ED also found that former Vivo director Bin Lou formed 18 companies in India between 2014-18. Besides, another Chinese national Zhixin Wei incorporated four companies in the country. It was also reported that Vivo’s Chinese directors fled India after the ED intensified its probe.

Besides Vivo, smartphone makers OPPO and Xiaomi are also under the ED scanner and the income tax department for evading tax worth INR 4,389 Cr and INR 5,551.27 Cr respectively. Oppo and Xiaomi are said to be facing fines of up to INR 1,000 Cr after violating tax laws. Previously, ED has probed Huawei as well as OnePlus.

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