A Delhi court has summoned the top leaders of the Chinese tech company Vivo, with CEO Shen Wei, CFO Chen Yu Fen, and Vivo Mobile India CEO Zhiyong Chen required to appear regarding a money laundering case involving Rs 20,241 crore. This action follows a supplementary chargesheet submitted by the Enforcement Directorate (ED) and signifies a notable advancement in the ongoing investigation against the smartphone giant.
Highlights
Details on the Court Summons
Additional Sessions Judge Kiran Gupta, upon reviewing the new charges, identified “sufficient material available on record” to progress against the accused. The Judge highlighted, “There is sufficient material available on record and grounds exist for proceeding further in the matter regarding the accused persons named in the supplementary prosecution complaint.”
Accusations Against Vivo Leadership
The court determined that Shen Wei, as the CEO of Vivo Mobile Communication, along with Chen Yu Fen and Zhiyong Chen, were central figures in establishing a sophisticated network of companies. They are charged with orchestrating and managing funds, while also diverting proceeds of crime exceeding Rs 20,000 crore beyond Indian borders.
Official Summons and Charges
Judge Gupta mandated that the three foreign nationals be summoned via the Ministry of Home Affairs, adhering to official protocols, with their appearance scheduled for August 18, 2025, under the Prevention of Money Laundering Act (PMLA).
Per the ED, Shen Wei played a crucial role in the formation of Vivo India in 2013 for the Chinese parent company, which retains control and ownership benefits. The chargesheet alleges that Chen Yu Fen was significantly involved in the financial structuring for Vivo group companies in India, purportedly aiming to mislead Indian authorities and acquire unlawful benefits for Vivo China.
Zhiyong Chen, who has been the Director of Vivo Mobile India since 2015, is accused of aiding in efforts to disguise the true ownership structure, facilitating the movement of illicit funds overseas under the cover of legitimate business activities.
Corporate Structure and Revenue Generation
The chargesheet asserts, “All these three accused persons established a convoluted corporate framework in a deceitful manner, which was employed for generating substantial revenue and remitting it outside India to their related entities disguised as the import of goods.” It further states, “The numerous business entities were governed by a single entity, namely Vivo China. In this way, they diverted proceeds of crime amounting to Rs 20,241 crore outside India.”
The ongoing investigation has already resulted in the detention of multiple Vivo India executives and other affiliates, including the former MD of Lava International, Hari Om Rai, and Chinese national Guangwen alias Andrew Kuang. The court had earlier summoned 53 accused in this case.
