NEW DELHI: Beijing will be providing consular protection and assistance to two Chinese employees of smartphone manufacturer Vivo, who were recently arrested by the Enforcement Directorate (ED) in connection with a money laundering probe.
While strongly urging India not to discriminate against Chinese companies, foreign ministry spokesperson Mao Ning said: “We are closely following the matter. The Chinese government firmly supports Chinese companies to safeguard their lawful rights and interests.”
On December 23, the ED had arrested three Vivo-India executives including interim CEO Hong Xuquan alias Terry — a Chinese national, Chief Financial Officer Harinder Dahiya and consultant Hemant Munjal.The trio was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA). The accused are currently in ED custody.
The agency had earlier arrested four people — mobile company Lava International’s MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik — in the case. They are in judicial custody at present.
The ED had claimed in its court papers presented for the earlier four arrestees that their alleged activities enabled Vivo-India to make wrongful gains that were detrimental to the economic sovereignty of India.
It had raided Vivo-India and its linked persons in July last year and claimed to have busted a major money laundering racket involving Chinese nationals and multiple Indian companies.
The ED had then alleged that Rs 62,476 crore was “illegally” transferred by Vivo-India to China to avoid payment of taxes in India.
The action is seen as part of the Centre’s efforts to tighten checks on Chinese entities that are allegedly indulging in serious financial crimes like money laundering and tax evasion while operating in India.
(With inputs from agencies)
While strongly urging India not to discriminate against Chinese companies, foreign ministry spokesperson Mao Ning said: “We are closely following the matter. The Chinese government firmly supports Chinese companies to safeguard their lawful rights and interests.”
On December 23, the ED had arrested three Vivo-India executives including interim CEO Hong Xuquan alias Terry — a Chinese national, Chief Financial Officer Harinder Dahiya and consultant Hemant Munjal.The trio was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA). The accused are currently in ED custody.
The agency had earlier arrested four people — mobile company Lava International’s MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, and chartered accountants Nitin Garg and Rajan Malik — in the case. They are in judicial custody at present.
The ED had claimed in its court papers presented for the earlier four arrestees that their alleged activities enabled Vivo-India to make wrongful gains that were detrimental to the economic sovereignty of India.
It had raided Vivo-India and its linked persons in July last year and claimed to have busted a major money laundering racket involving Chinese nationals and multiple Indian companies.
The ED had then alleged that Rs 62,476 crore was “illegally” transferred by Vivo-India to China to avoid payment of taxes in India.
The action is seen as part of the Centre’s efforts to tighten checks on Chinese entities that are allegedly indulging in serious financial crimes like money laundering and tax evasion while operating in India.
(With inputs from agencies)