Vivo PMLA case: Court issues fresh notice to Jail Superintendent to file medical report of Lava International MD

New Delhi [India], December 4 : The Patiala House Court of Delhi issued a fresh notice to the jail superintendent on Monday with directions to file a medical status report on cardiology and gastroenterology of Hari Om Rai, Managing Director of Lava International.
Hari Om Rai was recently arrested by the Enforcement Directorate along with Chinese national Guangwen Kuang, Andrew, Nitin Garg and Rajan Malik in connection with a Prevention of Money Laundering Act (PMLA) case related to the Chinese mobile company Vivo. All the accused are presently in judicial custody in the matter.
The Additional Sessions Judge Pawan Kumar listed the matter for December 8, 2023, after the request of both sides.
The court noted the submissions of Advocate Nitesh Rana, who appeared for Hari Om Rai, stated that the mandatory 60 days as per Section 167 Cr.P.C. are going to expire on 07.12.2023 and the Enforcement Directorate has to file the charge sheet on December 7, 2023; otherwise, the accused or applicant shall be entitled to statutory bail on December 8, 2023.
The Managing Director of Lava International, Hariom Rai, has recently filed a bail petition in trial court citing medical grounds. The plea also stated that the allegations made against him were false and absurd. He has no direct or indirect control over Vivo's business, nor has he derived any monetary benefit, nor has he engaged in any transaction with Vivo or any entity allegedly related to Vivo, let alone having been associated with any alleged 'proceeds of crime'.
He further explained that since Vivo China wanted to enter India, the applicant, Hariom Rai met with Shen Wei, CEO of Vivo China, in 2013. At that time, Vivo and the applicant/LAVA were contemplating a joint venture where 25% shares would be held by the applicant/LAVA. However, this eventually never fructified and Vivo decided to conduct its business in India.
The plea further stated that negotiations and business talks between the applicant and the representatives of Vivo China failed and did not meet a fruitful end due to which the applicant stopped pursuing the said opportunity and had nothing to do with Vivo China and/or its representatives after 2014. Merely because, over the years, the international relations between India and China have deteriorated, it would not mean that the applicant committed an offence at the relevant time when there were, in fact, friendly business relations between the two countries.
According to the ED, certain Chinese shareholders of Grand Prospect International Communication Private Ltd. incorporated the company based on forged identification documents and falsified addresses.
During the inquiry, certain fraudulent activities were found by the Ministry of Corporate Affairs. The said company was not reported as a subsidiary of Vivo in the official records, whereas the said company publicly projects itself to be a subsidiary of Vivo, said ED.
ED further alleged that Director and Share Holder Zhang Jie used a false driving licence to apply for a Director Identification Number (DIN) for giving his Shillong address and also used his fake driving licence to open the bank account. With the allegations of cheating, an FIR in Police Station Kalkaji, South East Delhi, was registered under Section 417/120B/420 IPC and another FIR was also registered under Section 417/420/468/471/120B IPC by the Economic Offence Wing, Delhi Police, based on the complaint filed by Manjit Singh, the then Deputy Registrar of Companies, Ministry of Corporate Affairs, NCT of Delhi.
ED further alleged that soon after the incorporation of M/s Vivo, India, 19 more companies, including M/s GPICPL, were incorporated across India, completely controlled by Chinese nationals. The accused, Bin Luo, was the founder and first director of Vivo India, GPICPL and all other 18 entities at the time of their incorporation and the accused, Nitin Garg, had assisted in the incorporation of most of the companies of Vivo Group.
According to the Enforcement Directorate, raids were on the premises of the accused on October 9th and seized cash amounting to more than Rs 10 lakhs and arrested four accused, who have been identified as Guangwen Kyang, aka Andrew Kuang, the Chinese national, Hari Om Rai, the MD of Lava International, Rajan Malik, and Nitin Garg, a Chartered Accountant.
The probe revealed that the PMLA investigation by ED was initiated by registering a money laundering case on February 3, 2022.