Latest Developments in Vivo's India Case!
On December 30th, the Delhi Patiala House Court in India ordered the release of three Chinese nationals who are senior employees and a consultant of Vivo's Indian subsidiary, a Chinese smartphone manufacturer. This information comes from local Indian newspapers such as the Economic Times, Indian Express, and Reuters. The individuals are interim CEO Hong Xuquan (also known as Terry), CFO Harinder Dahiya, and consultant Hemant Munjal.
Indian media reports indicated that after the arrested individuals questioned the legitimacy of the arrest, Judge Shirish Aggarwal deemed the arrests "illegal and invalid," ordering their release.
However, some reports suggested that the release of the individuals doesn't necessarily signify the closure of the Indian government's money laundering allegations against Vivo.
A week ago, India's financial crime-fighting agency, the Enforcement Directorate, arrested two executives from Vivo's Indian subsidiary on suspicion of money laundering. Authorities claimed that the investigation revealed the company's involvement in illicit transactions exceeding 62 billion Indian rupees, with individuals deliberately and systematically transferring significant funds back to China under the guise of commercial transactions.
Regarding the arrest, a spokesperson from Vivo expressed being "deeply shocked," stating that the recent actions by Indian authorities "indicate that the harassment is continuing, creating uncertainty across the industry." The company pledged to vigorously employ all legal means to address and challenge these allegations.
This is not the first time Vivo staff members have been arrested in India. In July this year, Indian law enforcement agencies conducted raids on Vivo's Indian subsidiary, alleging the discovery of a significant money laundering operation involving Chinese citizens and multiple Indian companies.
In October, India's financial enforcement agency also arrested Vivo employees on suspicion of money laundering. At that time, Vivo responded, affirming the company's strict compliance with local laws and regulations in India. "We are closely monitoring the recent investigation and will take all feasible legal measures in response."
Vivo entered India in 2014 and responded to the 'Make in India' initiative by establishing a manufacturing plant in Dainikpur in 2015. As of 2021, it operated over 650 service centers and 500 exclusive stores, with an annual production capacity of 60 million units at its Indian factory.