Three more people arrested in Vivo money laundering case

Enforcement Directorate i.e. ED has arrested 3 more people in the money laundering case related to Chinese mobile manufacturer Vivo. All three people have been arrested under the Prevention of Money Laundering Act (PMLA). The total number of arrests in this case has now reached 7. The ED had filed the first charge sheet in the case on December 7.

These high-profile arrests include Vivo India's interim CEO Hong Xuquan, Vivo's Chief Financial Officer (CFO) Harinder Dahiya and advisor Hemant Munjal. News agency PTI quoted sources as saying that the three accused were produced in a Delhi court on Sunday and were sent to ED custody for three days.

Earlier in October, ED had arrested Chinese national Guangwen Qiang alias Andrew Kuang, Lava International MD Hariom Rai besides chartered accountants Rajan Malik and Nitin Garg in a money laundering case. About a year ago, the agency searched Vivo Mobiles and its 23 associate companies at 48 locations across the country.

Vivo spokesperson said- 'We are extremely concerned by the current action of the authorities. The recent arrests reflect continued harassment and create uncertainty in the industry. We are determined to use all legal means to challenge these allegations.

According to ED allegations, 19 companies were formed in India to illegally transfer funds to China. Apart from this, the investigating agency of economic matters found that Vivo Mobiles India transferred half of its sales income (about Rs 1.25 lakh crore) to China to save tax. In this, Rs 62,476 crore was illegally sent to China.

If we understand the Prevention of Money Laundering Act i.e. PMLA in the common language, it means a law against those who misappropriate and dispose of the money. This Act seeks to prevent money laundering, confiscate property derived from or involved in money laundering and for matters connected therewith or incidental thereto.

PMLA was formed in 2002 during the NDA regime. This law came into effect in 2005 during the Congress rule, when P. Chidambaram was the Finance Minister of the country. The first change in the PMLA law was also made by Chidambaram in 2005.

Under PMLA, rules like ED being able to arrest the accused, confiscating his properties, strict conditions for getting bail after arrest and the statement recorded before the investigating officer being admissible as evidence in the court, make it powerful.