ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo

ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo
ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo
ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo
ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo

ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo

ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo

ED Arrests Four Individuals in Money Laundering Probe Linked to Vivo

In a significant development, the Enforcement Directorate (ED) has apprehended four individuals, including a Chinese citizen, a managing director, and two others, as part of its ongoing money laundering investigation involving Chinese mobile manufacturer Vivo. The arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA).

Arrested Individuals

The four individuals taken into custody are as follows:

  1. Guangwen Kyang alias Andrew Kuang – A Chinese national.
  2. Hari Om Rai – Managing Director of Lava International.
  3. Nitin Garg – A chartered accountant.
  4. Rajan Malik – Another private individual.

Background of the Investigation

The ED had previously conducted raids on Vivo Mobiles India Pvt Ltd and 23 associated firms in July of the previous year. During this operation, the agency uncovered crucial information related to the investigation.

One key revelation was the existence of GPICPL (M/s Grand Prospects International Communication Pvt. Ltd.), a company associated with Vivo. GPICPL was registered on December 3, 2014, with registered addresses in Solan, Himachal Pradesh, and Gandhinagar, Jammu. Notably, GPICPL had been incorporated with the involvement of Chinese citizens Zhengshen Ou, Bin Lou, and Zhang Jie, along with the assistance of Nitin Garg, a chartered accountant.

Bin Lou had departed from India on April 26, 2018, while Zhengshen Ou and Zhang Jie left India in 2021.

PMLA Investigation Background

The initiation of the PMLA investigation by the ED was rooted in a Delhi Police case registered in 2021 against M/s Grand Prospect International Communication Private Limited (GPICPL) and its directors, shareholders, and certifying professionals. This case was prompted by a complaint filed by the Ministry of Corporate Affairs.

The allegations were related to the use of forged identification documents and falsified addresses during GPICPL’s incorporation. Subsequent investigation revealed that the addresses provided by GPICPL’s directors did not correspond to their actual locations but instead pertained to a government building and the residence of a senior bureaucrat.

This money laundering probe has cast a spotlight on the intricate web of financial activities and alleged irregularities associated with Chinese mobile maker Vivo and its linked entities. The ED’s continued efforts to uncover financial improprieties underscore its commitment to upholding the law and investigating potential money laundering activities.

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