Vivo PMLA Case: Court Issues Summon to Acting CEO, 2 Ors

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.

This summons follows the filing of a supplementary prosecution complaint by the Directorate of Enforcement (ED) against three individuals and two firms. The complaint is related to the alleged siphoning of Rs 20,241 crores outside India.

Accused Named in Complaint

Named in the supplementary prosecution complaint are CFO Harinder Dahiya, Tax Consultant Hemant Kumar, Hong Xuquan alias Terry, Advisefox India LLP, and Reyansh Consulting and Investment Group. All three accused were arrested in December 2023 and subsequently challenged their arrest. They were released by the trial court on December 30, 2023. However, the ED contested this order before the High Court.

Special judge Kiran Gupta has issued summons to all accused persons, directing them to appear before the court on August 28th.

“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.

The court acknowledged the main prosecution complaint on December 20, 2023.

Allegations

Allegations in the supplementary prosecution complaint suggest that these accused individuals, along with others previously summoned on December 20, 2023, played a significant role in the acquisition and diversion of Proceeds of Crime (PoC) amounting to Rs 20,241 crores outside India.

According to the ED, accused Hong Xuquan, also known as Terry, has maintained regular contact with the current CEO of Vivo India and has overseen the entirety of Vivo India’s operations as acting CEO. The ED asserts that he has been pivotal in the ongoing acquisition of PoC by concealing the true beneficial ownership of Vivo India and SDCs by Vivo China.

“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 claimed.
Furthermore, it is asserted that accused Hemant Kumar Munjal serves as the Tax Consultant and is fully aware that Vivo China is the ultimate beneficial owner of Vivo India. The ED also alleges that Munjal is the beneficial owner of Advisefox India LLP and Reyansh Consulting Investment Group, and through these entities, along with M/S Vigour Mobil India Pvt. Ltd. (already an accused in PC), assisted Vivo India in the diversion of Proceeds of Crime outside India.

The agency also asserts that accused Harinder Dahiya has been serving as Director and Chief Financial Officer of Vivo India since 2020 and has played a crucial role in the continuous acquisition of proceeds of crime, totaling Rs 20,241 crore until March 31, 2021, in the present case.

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