[Vivo PMLA Case] Delhi HC Issues Notice To ED On Lava's MD Hariom Rai Plea

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The Delhi High Court issued a notice to the Enforcement Directorate (ED) regarding Lava Mobiles’ Managing Director Hariom Rai’s plea seeking an extension of interim bail in the Vivo PMLA case. ustice Swarna Kanta Sharma has directed the ED to respond to the plea and scheduled a further hearing on May 13

[Vivo PMLA Case] Delhi HC Issues Notice to ED for Interim Bail Extension To Lava's MD Hariom Rai — [Vivo PMLA Case] Delhi HC Issues Notice to ED for Interim Bail Extension To Lava’s MD Hariom Rai

New Delhi: Today (9th May): The Delhi High Court issued a notice to the Enforcement Directorate (ED) regarding a petition filed by Hariom Rai, the managing director of Lava International. Rai is seeking an extension of his interim bail in connection with a Prevention of Money Laundering Act (PMLA) case related to Chinese mobile phone manufacturing company Vivo.

Taking note of the submissions made by Pahwa, the bench of Justice Swarna Kanta Sharma has directed the ED to respond to the plea and scheduled a further hearing on May 13.

“The Delhi High Court, in granting three months’ interim bail to Hariom Rai, emphasized that his health condition warrants consideration under Section 45 of PMLA, affirming his right to seek medical treatment at a hospital of his choice.”

“Even otherwise, the life-threatening nature of coronary artery disease or cardiac-related issues cannot be equated with other categories of illnesses. Such medical conditions have the potential to precipitate life-threatening events at any moment, and thus, they stand unparalleled in their urgency and criticality,” the court stated.

Hariom Rai, aged about 57, had been arrested by the ED in connection with the PMLA case involving Vivo.

The plea on behalf of the applicant stated

” Negotiations and business discussions with representatives of Vivo China ended without fruitful results, leading the applicant to discontinue pursuing the opportunity and disengage from any involvement with Vivo China or its representatives since 2014. It emphasized that the deterioration of international relations between India and China over the years does not imply any wrongdoing on the applicant’s part during a time of amicable business relations between the two countries.”

According to the ED, certain Chinese shareholders of Grand Prospect International Communication Private Ltd. had incorporated the company using forged identification documents and falsified addresses. The ED alleged that fraudulent activities were detected by the Ministry of Corporate Affairs during the inquiry, revealing that the company was not officially reported as a subsidiary of Vivo, despite projecting itself as one publicly.

The agency further accused a director and shareholder named Zhang Jie of using fake identification to apply for Director Identification Number (DIN) and open a bank account.

The ED registered cases of cheating and economic offenses against the accused, including Hariom Rai, and conducted raids, resulting in the seizure of cash and the arrest of several individuals. The investigation under the PMLA was initiated based on a money laundering case filed in February 2022.

The Delhi High Court has issued a notice to the ED in response to Hariom Rai’s plea seeking an extension of his interim bail in the Vivo PMLA case. Rai’s health condition, particularly his heart-related issues, has been deemed critical by the court, necessitating specialized treatment.