ED arrests Vivo India interim CEO, 2 others in money laundering probe; ‘deeply alarmed’ says Chinese phone maker

The Enforcement Directorate (ED) has arrested three top executives of Vivo India in connection with the agency's probe into alleged money laundering by the Chinese smartphone maker.

Among the high-profile arrests made by the Enforcement Directorate are Vivo India interim CEO Hong Xuquan, Vivo chief financial officer (CFO) Harinder Dahiya and consultant Hemant Munjal.

The three accused were produced before a Delhi court on Sunday and were remanded in ED custody for three days, news agency PTI reported citing sources.

The arrest comes two months after the ED arrested four industry executives, including a Chinese national (Kyang alias Andrew Kuang) working for Vivo's Indian arm, Lava International MD Hari Om Rai and chartered accountants Nitin Garg and Rajan Malik.

Vivo has responded to the Enforcement Directorate arrests saying that it was "deeply alarmed by the current action of the authorities." In a statement quoted by Reuters, Vivo said, "The recent arrests demonstrate continued harassment and as such induce an environment of uncertainty amongst the wider industry landscape. We are resolute in using all legal avenues to address and challenge these accusations," a vivo spokesperson said

The arrests come two months after the Enforcement Directorate arrested four industry executives, including one Chinese national, working for Vivo's Indian unit in a case of alleged money laundering, charges the firm has denied. India has stepped up scrutiny of Chinese businesses and investments following a deadly border clash in 2020.

ED had filed a charge sheet against the four accused and Vivo India against a special PMLA court in Delhi and the court has recently took cognizance of the matter with Judge Kiran Gupta summoning the accused on February 19.

In the chargesheet, ED claimed that the four accused had conducted illegal activities that enabled Vivo India to make wrongful gains and were detrimental to the economic sovereignty of India.