ED filed a chargesheet against Vivo-India in the money laundering case
Digital News Guru Delhi Desk: The Enforcement Directorate (ED) has alleged the Chinese smartphone maker company Vivo-India in the money laundering case.
They have accused Vivo-India of having transferred a heavy amount of Rs. 62,476 crore illegally to China so the company could avoid payment of taxes in India. In this case, four people have been arrested under the Prevention of Money Laundering Act (PMLA).
The four accused are the Managing Director (MD) of Lava International Company, Hari Om Rai; the other person is Guangwen Kyang, who is a Chinese national; and the other two accused are Nitin Garg, a Chartered Accountant; and Rajan Malik. The first police complaint was filed by the Corporate Affairs Ministry against the associates of the company in the December, 2014.
For the first time, the Enforcement Directorate (ED) raided the Vivo-India in July last year. In the alleged case, the MD of Lava International Company, Indian Mobile Manufacturing company Mr. Hari Om Rai, has issued a statement, refusing all the allegations against him and saying that he is not involved in any illegal activity and has nothing to do with the Chinese company.
About Vivo company
Basically, the Vivo is a multinational company which belongs to China and headquartered in Dongguan, Guangdong (China). The company was first founded by the Shen Wei in the year 2009, who is also the Chief Executive Officer (CEO) of this company. This is smartphone manufacturing company which is currently owned by the BBK Electronics.
The company came in India in the year 2012 with the introduction of the smartphone Vivo X1. The Chief Executive Officer (CEO) of vivo-India is Jerome Chen. The headquarter of the Vivo Mobile India Private Ltd is located at Gurgaon, Haryana. Vivo ranks fifth in the top mobile brands of the world and ranks second in India after Samsung.
Controversy related to the Vivo Mobile in India
In 2020, police of Meerut has revealed that many smartphones of Vivo company are running on the same IMEI number, a 15 digit code which is different for every mobile phone ,so if any criminal activity happens, police can trace the person. Earlier this month, Delhi police also accused the Xiaomi and Vivo for the illegal funding to the news portal ‘News Click’. Now, again there is another case of money laundering against the Vivo company filed by the Enforcement Directorate (ED) in India.
Market share of Vivo in India
Vivo is already a very popular smartphone in India after Samsung. According to the reports of the ‘Counterpoint’ Samsung and Vivo are top selling smartphones brands in India. The share of the Samsung is 20% and the Vivo is 18% in Q2 2023.
But after these allegations against the Vivo India will harm the image of Vivo smartphone and if the charges against the company will prove true in the court then they have to pay very heavy amount as a compensation and also have to face restrictions in their business. But it would be interesting to see that what would be the reaction of the government if the charges are found to be true.
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