Three executives of Chinese smartphone maker Vivo India, arrested on suspicion of money laundering, have been granted bail by a Delhi court. The court ruled their detention illegal due to a procedural error but imposed conditions on their release.

The executives, including interim CEO Hong Xuquan, CFO Harinder Dahiya, and consultant Hemant Munjal, were arrested by the Enforcement Directorate (ED) on December 21st. However, the trio had claimed that they were arrested on December 21 and not on December 22, as recorded by the ED. 

This technicality led the court to find their custody unlawful as they should be produced before a judge within 24 hours of their arrest. Thus the court ordered bail for the executives on a bond of Rs 2 lakh each.

However, the ED expressed concern that the executives might tamper with evidence or influence witnesses and requested they report to the agency daily until January 3rd. The court agreed to this condition, noting that the ED intends to challenge the bail order after the Delhi High Court resumes session in the new year.

This case stems from a larger investigation into alleged money laundering by Vivo India. The ED claims the company illegally transferred a staggering Rs 62,476 crore to China to evade taxes, harming India’s economic sovereignty. The agency raided Vivo India and its associates in July 2023, leading to the arrest of four individuals, including the three executives who were recently granted bail.

The investigation and subsequent legal proceedings are ongoing, with the ED hoping to appeal the bail decision and Vivo India likely defending itself against the money laundering accusations. This case remains under close watch, as it has significant implications for both the tech sector and financial regulations in India.

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