In a significant development, the Enforcement Directorate (ED) has arrested Hong Xuquan, alias Terry, the interim CEO of Chinese phone manufacturer Vivo India, amongst three high-profile individuals taken into custody. The arrests come as part of an ongoing money laundering case, with the agency alleging that Vivo India has engaged in illegal remittances, laundering over Rs 62,000 crore.

Alongside Terry, the ED also apprehended Harinder Dahiya, the CFO of Vivo India, and Hemant Munjal, a consultant with the company. These arrests mark a crucial step in the investigation, as the agency aims to gather further information by questioning the accused during their custody period, which has been set at three days. The court has granted ED the custodial rights to interrogate them.

This is not the first round of arrests in this case. In October, the ED had arrested four individuals, including a Chinese national named Guangwen Kyang, alias Andrew Kuang, as well as Hari Om Rai, the managing director of Lava International, a prominent Indian phone manufacturer. Nitin Garg, the chartered accountant for Vivo, was also taken into custody. Currently, these four accused are under judicial custody, awaiting further legal proceedings.

According to sources, the ED is delving into suspicious transactions worth more than Rs 62,000 crore. These funds were remitted by Vivo India to its parent company in China, stemming from a total receipt of Rs 1.25 lakh crore generated from the company's Indian operations since 2014. The money laundering case initiated by the ED is founded on an FIR registered by the Delhi Police, which is investigating alleged forged addresses provided by the Chinese company for its Indian subsidiaries.

These recent developments have not gone unnoticed, with Vivo's actions causing diplomatic tensions. Previous searches carried out by the ED on premises associated with Vivo had triggered a dispute, prompting the Chinese foreign ministry and the Chinese embassy in India to release statements expressing concerns that Indian agencies' investigations were undermining the confidence of foreign entities investing and operating in India.

In response to the arrests, a Vivo spokesperson expressed deep alarm and accused the authorities of continued harassment. The spokesperson emphasized that Vivo would use all legal means to address and challenge the allegations.

It remains to be seen how the investigation will unfold as the ED continues to probe the intricacies of this high-profile money laundering case. The agency's forthcoming report, along with any relevant CCTV footage, is set to shed further light on the matter. Meanwhile, the arrested individuals await their formal charges and subsequent legal proceedings as the case progresses.