In a significant development in the ongoing money laundering investigation involving major smartphone manufacturers, the Delhi High Court has granted bail to Hari Om Rai, Managing Director of Lava International. Justice Manoj Kumar Ohri ruled in favor of Rai, who had been detained since October of last year following his arrest by the Enforcement Directorate (ED) in connection with a case against Vivo-India.
The court’s decision to release Rai on bail was influenced by several factors, including the length of his custody, the fact that other accused in the case had already been granted bail, and the early stage of the trial. Rai is required to post a personal bond of Rs 1 lakh with one surety of the same amount.
During the proceedings, Justice Ohri emphasized that the “twin conditions” for granting bail under Section 45 of the Prevention of Money Laundering Act (PMLA) were satisfied in Rai’s case. The court noted, “Section 45 of the PMLA could not be used as a tool for incarceration and an accused in a money laundering case could not be equated with those facing offences like murder, cases of rape, dacoity, etc., which are punishable with death or life sentence.”
The judgement highlighted that the complexity and volume of the case, with multiple accused, thousands of pages of evidence, and several witnesses, indicated that the trial would not conclude soon. The court held that prolonged incarceration without the prospect of a near-term trial conclusion contradicts the constitutional rights protected under Article 21.
Rai’s legal representation included senior advocate Vikas Pahwa and lawyer Abhay Raj Varma, who successfully argued for his bail under these considerations. Meanwhile, a trial court had previously denied bail to Rai in September, citing insufficient grounds for relief.
The charges against Rai stem from a broader ED investigation alleging that Vivo-India illegally transferred a substantial sum of Rs 62,476 crore to China, purportedly to evade taxes in India. The ED claims that these activities compromised the economic sovereignty of India. Vivo-India has denied all allegations, maintaining its commitment to ethical practices and legal compliance.
