A Delhi Patiala House Court has extended the judicial custody of the accused individuals, including Hari Om Rai, the Managing Director of Lava International mobile company, by 14 days in connection with a money laundering case related to Chinese smartphone-maker Vivo. The four accused in the case are Lava International MD Hari Om Rai, Chinese national Guangwen alias Andrew Kuang, and Chartered Accountants Nitin Garg and Rajan Malik.
During the court proceedings on Thursday, Guangwen Kuang alias Andrew, Hari Om Rai, Rajan Malik, and Nitin Garg were produced before the court after the end of their judicial remand granted earlier by Special Judge Devender Jangala. The court, after hearing arguments, extended their judicial custody until December 7.
Advocate Nitesh Rana, representing Hari Om Rai, argued that there is no fresh material to extend judicial custody, and the application seeking custody is mechanical, with no allegation of non-cooperation against Hari Om Rai.
The case revolves around allegations of money laundering related to Chinese smartphone-maker Vivo. Vivo has consistently denied the allegations, with a spokesperson stating, “We will pursue necessary and appropriate legal recourse.”
The Enforcement Directorate (ED) alleges that certain Chinese shareholders of Grand Prospect Internation Communication Private Ltd. incorporated the company based on forged identification documents and falsified addresses. The ED further claims that the company was not reported as a subsidiary of Vivo in official records, despite publicly projecting itself as such.
The accused individuals are facing charges related to cheating, with FIRs registered under various sections of the Indian Penal Code. The ED alleges that fraudulent activities were found during the incorporation of Vivo India, and several other companies controlled by Chinese nationals were incorporated across India.
During the raids conducted on October 9, cash amounting to more than Rs 10 lakhs was seized, and four individuals, including Guangwen Kyang aka Andrew Kuang, Hari Om Rai, Rajan Malik, and Nitin Garg, were arrested. The PMLA investigation by the ED was initiated on February 3, 2022.
The legal proceedings are ongoing, with the accused individuals contesting the allegations against them.
