Three Executives of Vivo India Granted Bail in Money Laundering Case
Three executives of Vivo India, a Chinese smartphone maker, have been granted bail by a Delhi court in a money laundering case. The court found their detention to be illegal due to a procedural error but imposed certain conditions on their release.
Arrest and Bail Conditions
The executives, including interim CEO Hong Xuquan, CFO Harinder Dahiya, and consultant Hemant Munjal, were arrested by the Enforcement Directorate (ED) on December 21st. However, they argued that they were actually arrested on December 21 and not on December 22, as recorded by the ED. This discrepancy led the court to declare their custody unlawful, as they should have been produced before a judge within 24 hours of their arrest. As a result, the court ordered their release on bail, requiring each executive to pay a bond of Rs 2 lakh.
Conditions Imposed
Despite granting bail, the court recognized the concerns raised by the ED regarding the possibility of tampering with evidence or influencing witnesses. To address these concerns, the court imposed a condition that the executives must report to the agency daily until January 3rd. The ED intends to challenge the bail order after the Delhi High Court resumes session in the new year.
Background on the Case
The case against Vivo India is part of a larger investigation into alleged money laundering. The ED alleges that the company illegally transferred a significant amount of Rs 62,476 crore to China in order to evade taxes, which has had a negative impact on India's economic sovereignty. The agency conducted raids on Vivo India and its associates in July 2023, leading to the arrest of four individuals, including the three executives who have now been granted bail.
Ongoing Investigation and Legal Proceedings
The investigation into the alleged money laundering by Vivo India is still ongoing. The ED is hopeful of appealing the bail decision, while Vivo India is expected to defend itself against the accusations. This case has significant implications for both the technology sector and financial regulations in India, and will continue to be closely monitored.
