India’s Enforcement Directorate (ED) filed its first chargesheet on Thursday against Chinese smartphone maker Vivo in an alleged money laundering case. The chargesheet was submitted to a special court in New Delhi under the Prevention of Money Laundering Act (PMLA).
The charges come after ED raids last July on Vivo offices that officials claim exposed a major money laundering operation. As part of the investigation, four people were arrested, including the heads of two Indian mobile companies.
In documents presented in court, ED asserts the actions of these executives enabled Vivo-India to earn illegal profits while posing economic threats to India. Officials allege over $8 billion was illegally transferred from Vivo India to China to avoid taxes.
Vivo rejects accusations of unethical practices, maintaining it adheres firmly to legal compliance. However, the chargesheet keeps legal pressure on the Chinese smartphone giant amid strained diplomatic relations between the Asian giants.
An Indian court recently requested an updated medical report on the jailed managing director of domestic manufacturer Lava, one of those detained last year. He claims he cut ties with Vivo years ago, but the chargesheet keeps the spotlight on complex links between Chinese companies and local Indian partners.
As the investigation continues, the ED aims to identify how far-reaching the financial channels between Vivo and associated companies stretch. Officials described an intricate money trail spanning India and China they believe concealed underhanded dealings.
