Indian media reported that key executives from Vivo's Indian subsidiary have been arrested. vivo, in response, has affirmed its unwavering commitment to addressing the situation through all available legal channels.
Sources indicate that on December 23, 2023, local time, the Enforcement Directorate of India apprehended Mr. Hong Xuquan, serving as the interim CEO of Vivo's Indian subsidiary, as one of the three individuals implicated in an ongoing money laundering probe. The ED alleges that the company engaged in illicit transactions exceeding INR 62 billion.
Further revelations from insiders suggest that the other two individuals detained in connection with this case are Mr. Harinder Dahiya, the CFO of Vivo's Indian subsidiary, and Mr. Hemant Munjal, an advisor to the company. Investigations are actively underway, with the agency poised to conduct comprehensive interrogations of the apprehended vivo executives.
Their court appearance is scheduled for December 26, sources said. Post the court proceedings, the trio is slated to undergo a rigorous three-day interrogation at the hands of the Enforcement Directorate.
Indian authorities assert that the investigation uncovers a deliberate and systematic repatriation of substantial funds to China, camouflaged under the guise of legitimate commercial transactions.
"These recent arrests underscore the persistent challenges faced by the industry, injecting an element of uncertainty. We remain resolute in leveraging all legal avenues to address and contest these allegations," Vivo's Indian subsidiary expressed.
This incident marks not the first instance of vivo personnel facing legal scrutiny in India. In July of this year, Indian law enforcement conducted a targeted search at vivo's Indian subsidiary, unveiling a large-scale money laundering operation involving Chinese nationals and multiple Indian entities.
Two months prior, the Indian regulatory financial crime agency apprehended four employees from vivo's Indian subsidiary, including a Chinese national, alleging their complicity in money laundering. All individuals implicated in the case are presently under judicial detention, with the agency having submitted a comprehensive charge sheet in early December. Vivo denied in relation to these allegations.