Vivo Employee Arrested by India on Money Laundering Allegations
According to a recent report by Reuters, Government officials in India have arrested a Vivo Employee over money laundering charges. The arrest comes after India started increased scrutiny of Chinese companies working in the country. The arrest is allegedly due to a money laundering case as shared by lawyers working on the case, however, the exact reasons and names are still unknown.
According to Reuters, India’s Enforcement Directorate (ED) arrested four Vivo Employees however three of them were released through a court hearing. One of the employees remains arrested and ED was allowed 3 days to inquire him about the allegations. The arrested employee is a Chinese National named Guanwen Kuang as told by lawyers working on the case.
Vivo repeatedly denied the allegations put forward and claimed they “ensure everything is in legal compliance and according to local laws“. These arrests come after further development of raids that ED did on Vivo offices in 2022. In 2022 ED also blocked 119 accounts linked with Vivo in India, however, a court later ordered them to reverse their decision.
Problems for Chinese Companies in India
Since New Delhi’s relations with Beijing have been weakened, Chinese enterprises in India have come under closer scrutiny. Companies are facing serious difficulties as a result of this.
Since then, India has restricted inbound investments from China and blocked hundreds of Chinese apps like TikTok, citing national security concerns.
BYD, a Chinese automaker, recently scrapped a $1 billion investment plan to manufacture electric vehicles and batteries in India due to heightened scrutiny from Indian agencies.
Source: Reuters
