HC bans Chinese citizens from going to China in Vivo Money Laundering case, says- What will happen if they do not come back? | Delhi High Court Blocks Vivo Linked Chinese Nationals From China Travel Over Flight Risk

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Delhi High Court has stopped two Chinese citizens implicated in the Rs 20,000 crore money laundering case related to Vivo from going to China. The lower court had allowed him to go, but the ED challenged it. The High Court said that there is no extradition treaty between India and China, hence there is a big risk of their not returning.

New Delhi: Delhi High Court has stayed the lower court order allowing two Chinese citizens accused in the money laundering case of about Rs 20,000 crore related to Vivo Mobile to go to China. The High Court said that the risk of these people absconding is very high and there is no extradition treaty between India and China.

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Who is that Chinese citizen?

  • The name of one of these Chinese nationals is Guangwen Kuang alias Andrew, who worked as an admin manager. He was arrested in October 2023 and got bail in November 2024.
  • The name of the second Chinese citizen is Weigang Wang. The Enforcement Directorate (ED) has filed a charge sheet against both of them in this money laundering case.

Decision after hearing ED’s arguments

  • ED had challenged the June 17 order of the lower court, in which both the accused were allowed to go to China. The agency demanded the High Court to cancel this order. Besides, an appeal was also made to put an interim stay on the order till the decision on the petition comes.
  • Justice Tejas Karia, after hearing the arguments of ED, stayed the order of June 17 and issued notice to both the Chinese citizens. The next hearing of the case will be on July 2.
  • In his order dated June 19, Justice Karia said, “Considering all the facts and circumstances of the case, the execution of the order dated 17.06.2026 of the lower court is stayed till the next hearing.”
  • The court further said, “Therefore, it is necessary to consider this petition. If the order is not stayed, the accused will go to China, which will render this petition meaningless.”

On June 8, Kuang’s application to travel abroad was rejected.

  • Giving interim relief to the ED, the High Court said that both the accused are citizens of China and face serious charges under the Indian Penal Code (IPC) and Prevention of Money Laundering Act (PMLA).
  • While staying Guangwen Kuang’s order, Justice Karia said, “Given the seriousness of the allegations, the accused being a foreign national and the absence of any extradition treaty between India and China, the apprehension that he will not return to India is not unfounded.”
  • The high court also noted that on June 8, the lower court had rejected Kuang’s application to travel abroad. But thereafter, without any new concrete reason, the repeated application was approved.
  • The court said, “This court finds merit in the ED’s argument that if the accused is allowed to leave India at this stage, the investigation and proceedings related to serious allegations of money laundering may be affected.”
  • The court also told that the medical documents which the accused had attached with his application have not been examined yet. The court also found that the ED was not given adequate opportunity to verify the medical condition of the accused’s father before passing the disputed order.
  • Special counsel Zohaib Hossain and lawyer Pranjal Tripathi, appearing for the ED, argued that Gwangwen Kuang alias Andrew knowingly facilitated activities related to the proceeds of crime. According to the agency, his role included hiding the real owners of the companies, running companies set up to launder the proceeds of crime and helping in money laundering.
  • ED said that investigation has revealed that Vivo Mobile India Private Limited and its state distributor companies earned approximately Rs 2,02,41,17,72,292 through crime.
  • Subsequently, the agency filed a complaint under sections 3, 4 and 70 of PMLA in the lower court on December 6, 2023. On December 20, 2023, the trial court took cognizance of the complaint and made Kuang an accused in the case.
  • During the hearing, it was also told that the Look Out Circular (LOC) issued against Kuang was canceled by the lower court on April 29, 2026. ED told the High Court that that order has also been challenged. At the same time, the accused’s lawyer argued that this challenge was given after the present petition was filed, hence it cannot be made the basis for withholding the permission to travel.
  • The High Court will hear the matter next on July 2.

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