Vivo India CEO CFO detained on anti money laundering investigations

Mondo Finance Updated on 2024-01-31

As the Christmas holidays of 2023 approach, India's Enforcement Directorate (JDF) re-arrested a number of Vivo India executives on December 23 for an anti-money laundering investigation, including the company's interim CEO and CFO. The news sparked a heated public debate, with some worried about whether the development of Chinese handset makers in India had been affected.

Vivo expressed deep shock at the incident. They believe that the action by the Indian authorities proves that harassment continues, creating a certain uncertainty for the industry as a whole. In this regard, vivo said that they will resolutely use all available legal means to challenge this allegation. The company also stressed that all of its operations in India are in strict compliance with local laws and regulations, and that it is closely monitoring the incident and will take all possible legal measures to fight back.

Recall that in October this year, India's financial law enforcement agencies arrested Vivo employees on suspicion of money laundering. In that case, vivo adopted a similar response strategy, emphasizing that the company's operations in India strictly comply with local laws and regulations, and made legal defenses.

Since late 2021, Indian authorities have launched a number of tax raids on Chinese phone makers such as Xiaomi, Vivo, and OPPO, and have frozen or seized their funds in India for various reasons. In response to this situation, Yang Shucheng, secretary general of the China-India-Vietnam Electronics Association, once told Jian News that it is not just a spot check but a general survey for Chinese companies, he pointed out that the current law enforcement in India is quite strict, in addition to checking the company itself, it will also track down the upstream and downstream ** chain and affiliated companies, which is not available in other countries.

The arrest of a Vivo executive by Indian law enforcement agencies has once again drawn public attention to the actions of Indian law enforcement agencies. It is being seen whether the Chinese phone makers will be able to challenge the charges of Indian law enforcement through legal means, and to see further developments.

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