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What TV doesn't, print can't; we deliver.
Delhi High Court has granted bail to Hari Om Rai, Managing Director of Lava International Ltd, in a money laundering case involving Vivo Mobile Communication Co. Ltd, China.
NEW DELHI: The Delhi High Court has granted bail to Hari Om Rai, Managing Director of Lava International Ltd, in a ₹70,837 crore money laundering case involving Vivo Mobile Communication Co. Ltd, China. The court noted that delays in trial cannot justify indefinite detention under Section 45 of the Prevention of Money Laundering Act (PMLA).
Rai was ordered to furnish a ₹1 lakh bail bond with a surety of the same amount. He had sought regular bail through senior advocate Vikas Pahwa.
The High Court observed that the investigation, initiated in 2022, has so far named 53 accused and cited 542 witnesses in a Prosecution Complaint and its supplementary version. The evidence comprises over 83,500 pages, making the trial unlikely to conclude soon.
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The Enforcement Directorate (ED) alleged that Vivo Mobile India and its State Distribution Companies (SDCs) concealed their Chinese ownership and remitted ₹70,837 crores to overseas entities controlled by Vivo China between 2015 and 2021. This network of companies reportedly facilitated money laundering under a corporate veil.
The ED claimed that Rai helped Vivo China establish its operations in India by inviting Chinese nationals between 2013 and 2014, providing logistical support, and circumventing FDI norms. He was accused of transferring ₹3.17 crores, including ₹2.62 crores from Lava and ₹55 lakhs from his personal account to Labquest Engineering Pvt. Ltd. to assist in setting up multiple companies linked to Vivo China.
Pahwa argued that Rai was not involved in the operations of any Vivo-related companies and had no knowledge of their alleged offences. The invitations issued to Chinese nationals in 2013–14, he said, were unrelated to the alleged crimes, as they predated the period of offence. The ₹3.17 crore transaction was explained as a loan repaid with interest before the alleged offences occurred.
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The High Court noted that Rai had cooperated with the investigation before his arrest and cited the Supreme Court’s ruling in Manish Sisodia v. Directorate of Enforcement, which emphasized the right to bail in cases of prolonged trial delays.
The ED also alleged other irregularities, such as the use of forged documents for bank accounts and Director Identification Numbers, and violations in visa procedures. While granting bail, the court recognized the significant delays in the trial and upheld Rai’s right to life and liberty under Article 21 of the Constitution.
