PMLA case: Court summons Vivo's acting CEO after ED filed supplementary charge sheet

New Delhi [India], May 30 : Delhi's Patiala House court has recently summoned Vivo India Acting CEO Hong Xuquan alias Terry and two others, including Chief Financial Officer (CFO) and a Tax consultant. The Directorate of Enforcement(ED) filed a supplementary prosecution complaint (charge sheet) against three individuals and two firms. This case pertains to alleged siphoning of Rs 20241 crores outside India.
The ED filed the supplementary prosecution complaint against CFO Harinder Dahiya, Tax Consultant Hemant Kumar, Hong Xuquan alias Terry, Advisefox India LLP and Reyansh Consulting and Investment Group.
These three accused were arrested in December 2023. They had challenged their arrest and were released by the trial court on December 30, 2023. ED had challenged the order before the High court.
Special judge Kiran Gupta issued summons to all accused persons and directed them to appear before the court on August 28.
"There is sufficient material available on record and grounds exist for proceeding further in the matter qua the accused persons as named in the supplementary prosecution complaint in addition to the already 48 summoned accused persons," the court said in the order passed on May 20.
The court had taken cognizance of the main prosecution complaint on December 20, 2023.
It has been alleged in the supplementary prosecution complaint that these accused persons, along with other co-accused persons who have already been summoned on December 20, 2023, have played a crucial role in acquisition and siphoning off Proceed of Crime (PoC) to the tune of Rs 20,241 crores outside India.
The ED stated that accused Hong Xuquan alias Terry has been in regular contact with the current CEO of Vivo India and has been looking after the entire operations of Vivo India as acting CEO. He has been instrumental in continued acquisition of PoC by concealing the true beneficial ownership of Vivo India and SDCs by Vivo China, the ED claimed.
"He actively assisted Vivo India and Vivo China in the process and activities connected with the acquisition, possession, transfer and projection of PoC as untainted property as defined under Section 3 read with Section 70 of PMLA," the ED alleged.
It is further stated that accused Hemant Kumar Munjal is the Tax Consultant, who was well aware that Vivo China is the ultimate beneficial owner of Vivo India.
The ED has also stated that Munjal is the beneficial owner of Advisefox India LLP and Reyansh Consulting Investment Group and he through these companies along with M/S Vigour Mobil India Pvt. Ltd. (already an accused in PC) assisted Vivo India in siphoning of the PoC outside India.
The agency stated that accused Harinder Dahiya, is working as Director as well as Chief Financial Officer of Vivo India since 2020 and has played crucial role in continuous acquisition of proceeds of crime which in the present case is Rs 20,241 crore till March 31, 2021.