The Patiala House Court on Wednesday has granted bail to Rajan Malik, a chartered accountant arrested by the Enforcement Directorate in a case under the Prevention of Money Laundering Act (PMLA) involving the Chinese mobile company Vivo.
The bail order was issued by Additional Sessions Judge Kiran Gupta, with Malik represented by Advocate Hemant Shah and briefed by Advocate Mohit Kumar Gupta. Malik had been arrested in October of the previous year.
This case also implicates several other individuals, including Hari Om Rai, former Managing Director of Lava International; Guangwen (Andrew Kuang), a Chinese national; and chartered accountant Nitin Garg.
The ED has filed a charge sheet against them, which has been acknowledged by the special PMLA court.
Hari Om Rai previously explained in his plea that he met Shen Wei, CEO of Vivo China, in 2013 to discuss a potential joint venture where Lava International would hold a 25% share.
However, these negotiations fell through, and Vivo subsequently chose to operate independently in India. Rai emphasized that after 2014, he had no dealings with Vivo, arguing that the deteriorating India-China relations should not retroactively implicate him in any alleged misconduct.
The ED’s allegations include claims that certain Chinese shareholders established Grand Prospect International Communication Private Ltd. using forged documents and false addresses. The agency asserts that this company falsely presented itself as a subsidiary of Vivo, a claim not supported by official records.
Moreover, the ED accused director Zhang Jie of utilizing a fake driving license to obtain a Director Identification Number (DIN) and open bank accounts.
The investigation led the ED to register two FIRs for various offenses, including cheating and forgery. Following Vivo India’s incorporation, 19 other companies were established in India, all controlled by Chinese nationals, with Nitin Garg allegedly playing a role in their incorporation.
On October 9, raids were conducted that resulted in the seizure of over ₹10 lakhs in cash and the arrest of four individuals: Guangwen (Andrew Kuang), Hari Om Rai, Rajan Malik, and Nitin Garg.
The ED launched its money laundering investigation on February 3, 2022, which has since unfolded into a complex web of alleged financial misconduct.
As the legal proceedings continue, the involvement of high-profile individuals and international entities has attracted significant attention, highlighting the intricate issues surrounding money laundering and corporate governance in cross-border transactions.
