The Enforcement Directorate (ED) arrested four executives of Chinese smartphone maker Vivo on 10 October, according to Reuters, citing persons familiar with the situation.
These arrests occur at a time when tensions between Beijing and New Delhi are escalating over topics ranging from border disputes to India's increased scrutiny of Chinese enterprises and investment.
According to the report, the executives were arrested in connection with an ongoing 2022 case in which the ED searched the company's offices and accused it of money laundering.
The charges have been frequently dismissed by the firm. It previously stated that it worked with authorities to give all necessary information and was “committed to being fully compliant with laws.”
Vivo officials were summoned to the ED's Delhi office for questioning before being arrested. They will appear in court later on 10 October, as per the report.
The ED banned 119 bank accounts linked to Vivo's India operations in 2022, but a court later overturned the decision.
According to documents released on 6 October, police have publicly accused Vivo Mobile and fellow Chinese smartphone maker Xiaomi Corp of assisting in the illicit transfer of funds to a news outlet under investigation for propagating Chinese propaganda.