Two months ago, the ED arrested four industry executives, including one Chinese national, working for Vivo’s India unit in a case of money laundering. (Image for representation: News18)

India has stepped up scrutiny of Chinese businesses and investments following a deadly border clash in 2020

The Enforcement Directorate has arrested two senior employees working for Chinese smartphone maker Vivo’s India unit, which the company vowed to challenge legally.

The arrests come two months after the ED arrested four industry executives, including one Chinese national, working for Vivo’s India unit in a case of alleged money laundering; charges the firm has denied. India has stepped up scrutiny of Chinese businesses and investments following a deadly border clash in 2020.

“We are deeply alarmed by the current action of the authorities,” said a Vivo spokesperson. “The recent arrests demonstrate continued harassment and as such induce an environment of uncertainty amongst the wider industry landscape. We are resolute in using all legal avenues to address and challenge these accusations.”

According to a source directly involved with the case, the individuals arrested were brought to a Delhi court on Saturday and sent to the agency’s custody. The Vivo employees, whose identity Reuters could not confirm, will next appear in court on December 26, the source said.

An ED spokesperson did not immediately respond to a request for a comment.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)