The Enforcement Directorate (ED) has arrested the MD of Lava International mobile company, a Chinese national, a Chartered Accountant, and another person as part of its ongoing money-laundering probe against Chinese smartphone-maker Vivo, quoting some official sources PTI said on Tuesday. The four were taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).
According to the report, they are expected to be produced before a court here where the ED will seek their custody. The agency had raided the company and its linked persons in July last year, claiming to have busted a major money laundering racket involving Chinese nationals and multiple Indian companies.
The ED had then alleged that a whopping Rs 62,476 crore was "illegally" transferred by Vivo to China in order to avoid payment of taxes in India. In 2022, the ED blocked 119 bank accounts linked to Vivo's India business, but a court later revoked the move.
Last year in July, the law enforcement agency conducted raids at multiple locations across the country in action against Vivo, and several firms linked to it.
The company has repeatedly denied the allegations. It has previously said it cooperated with authorities to provide them with all required information and was "committed to be fully compliant with laws."
Vivo is owned by China's BBK Electronics, which also operates brands such as Oppo and Realme in India. Vivo is the second biggest smartphone brand in India with a 17 per cent market share in shipments, trailing behind Samsung, according to data from research firm Counterpoint.
The first source said Vivo executives were summoned to the ED's Delhi office for questioning, and then arrested. They will appear in court later on Tuesday, the person added.
ED also has formally accused Vivo of helping transfer funds illegally to a news portal under investigation on charges of spreading Chinese propaganda, Reuters reported last week. Vivo hasn't commented on the matter.