The Delhi Court has granted bail to a chartered accountant, one of the main accused in the high-profile ₹20,000 crore money laundering case linked to Chinese smartphone maker Vivo. However, controversy surrounds CA’s release, with the Enforcement Directorate ( ED ) labelling him as the “main mastermind” behind the elaborate financial scheme.
The ED vehemently opposed CA’s bail, asserting that he played a pivotal role in establishing a network of 19 companies integral to the money laundering operation. Designating him as the “first limb” in this intricate web, the ED argued against the accountant’s release, contending that his involvement went beyond mere financial activities.
The ED also added that the CA “knowingly incorporated” distributor companies of Vivo India, facilitating the illicit transfer of funds from India to China. Furthermore, the agency claimed that the accountant had prior contact with the Chinese Government before 2014, raising concerns about his potential flight from India if granted bail.
Senior counsel Sidharth Agarwal, representing CA, maintained that any forgery occurred after the incorporation of the companies and that Garg did not engage in document manipulation.
This development follows a series of arrests in October, including a Chinese national and the Managing Director of Lava International mobile company. The chargesheet accessed earlier revealed a complex network of entities controlled by Vivo China, allegedly involved in using forged identity documents to acquire gains to the detriment of Indian laws and economic sovereignty.
The ED arrested four persons involved in this scam inducing the accountant on October 10, 2023. It was claimed that the alleged activities of the four enabled Vivo India to make wrongful gains that were detrimental to the economic sovereignty of India.
It was claimed that some companies were found to have transferred huge amounts of funds to Vivo India. It can be viewed that out of the total sale proceeds of Rs 1,25,185 crore, Vivo India remitted Rs 62,476 crore i.e., almost 50 per cent of the turnover out of India, mainly to China.
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