Delhi HC grants bail to Lava’s former MD in money laundering case

The court further noted that the trial is at a nascent stage and charges are yet to be framed.

Rai was arrested on money laundering charges in a case against Vivo India and others.

In 2022, the ED had initiated a probe against Vivo alleging that it acquired proceeds of crime worth Rs 20,241 crore, which Vivo India siphoned to overseas trading companies, many of which are in control of China. The prosecution complaint initially named 48 accused, and a supplementary chargesheet filed on February 19, added the names of five more accused.

The ED had alleged that the accused cheated the government by entering India in a “disguised and fraudulent manner to set up an elaborate Chinese-controlled network throughout the country” with Vivo employees allegedly working without appropriate visas and violating employment visa rules.

According to ED, Rai extended invitations to Chinese nationals, who, during their stay in India, committed the predicate offence by using forged licenses to open bank accounts. They allegedly also committed illegalities in the visa obtainment process.

The court in its bail order recorded that of the 193 visas issued to Chinese nationals who had come in the context of Vivo India and its state distribution companies, the Indian company stated to be involved in their visa process is GPICPL (Grand Prospect International Communication Pvt Ltd).

“…no material proof has been brought to the attention of this court to prove that… two Chinese nationals had come to India on invitations sent by the applicant (Rai). Moreover, admittedly, the invitation letters were issued between December 2013 to April 2014. The period of offence as per the FIR…is 03.12.2014 to 13.12.2021, i.e. subsequent to the issuance of invitation letters. Nothing has been shown to prove that the applicant (Rai) was aware that an offence was going to be committed on account of him extending the said invitations,” the court said.