 "Vivo PMLA case: Patiala House Court grants bail to CA Rajan Malik")
The Patiala House Court in Delhi granted bail to Rajan Malik, a chartered accountant arrested by the Enforcement Directorate (ED) in a Prevention of Money Laundering Act (PMLA) case linked to the Chinese mobile company Vivo.
Additional Sessions Judge Kiran Gupta issued the bail order, with Malik represented by Advocate Hemant Shah and briefed by Advocate Mohit Kumar Gupta. Malik was arrested in October of last year.
This case also involves other individuals, including Lava International's former Managing Director Hari Om Rai, Chinese national Guangwen (Andrew Kuang), and chartered accountant Nitin Garg.
The ED has filed a charge sheet against them, which the special PMLA court took cognisance of.
Hari Om Rai earlier explained in his plea that in 2013, he met Shen Wei, the CEO of Vivo China, to discuss a potential joint venture with Lava International, where Lava would hold 25 per cent shares.
However, these negotiations did not materialize, and Vivo opted to operate independently in India. Rai emphasized that after 2014, he ceased all dealings with Vivo, arguing that the subsequent deterioration of India-China relations should not retroactively implicate him in any wrongdoing.
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The Enforcement Directorate (ED) alleged that certain Chinese shareholders incorporated Grand Prospect International Communication Private Ltd. using forged documents and false addresses.
They claimed that this company falsely presented itself as a subsidiary of Vivo, which was not reflected in official records. Additionally, the ED accused director Zhang Jie of using a fake driving license to obtain a Director Identification Number (DIN) and open bank accounts.
The ED's investigation led to two FIRs registered for various offenses, including cheating and forgery. Following the incorporation of Vivo India, 19 other companies were established in India, controlled by Chinese nationals, with Nitin Garg allegedly assisting in their incorporation.
Raids on October 9 resulted in the seizure of over Rs 10 lakhs in cash and the arrest of four individuals: Guangwen (Andrew Kuang), Hari Om Rai, Rajan Malik, and Nitin Garg. The ED initiated its money laundering investigation on February 3, 2022.