The Delhi High Court has stayed a trial court order allowing two Chinese nationals accused in a Rs 20,000 crore money laundering case linked to Vivo Mobile to travel to China, citing a high flight risk and the absence of an extradition treaty between India and China.
One of the accused, Guangwen Kuang, also known as Andrew, who worked as an administrative manager, was arrested in October 2023 and granted bail in November 2024. The other accused is Weigang Wang. Both are charge sheeted by the Enforcement Directorate (ED) in connection with the alleged money laundering.
The ED challenged the trial court’s June 17 order permitting their travel and sought its quashing as well as an interim stay pending a High Court hearing. Justice Tejas Karia granted the stay on June 19 and issued notice to the respondents. The case is listed for further hearing on July 2.
Justice Karia noted in the order: “Having considered the entirety of the facts and circumstances of the case, the operation and effect of the Order of 17.06.2026 passed by the learned Trial Court shall remain stayed until the next date of hearing.” The court added, “Accordingly, the Petition merits consideration. In the event the operation of the Order is not stayed, the Respondent will travel to China, thereby rendering the present Petition infructuous.”
The High Court highlighted that the respondents are nationals of the People’s Republic of China and face allegations under the Indian Penal Code and the Prevention of Money Laundering Act. It said, “Having regard to the nature of the allegations, his foreign nationality, and the absence of an extradition treaty or arrangement between India and the People’s Republic of China, the apprehension that he may not return to India cannot be said to be unfounded.” This observation was made while staying the order related to Guangwen Kuang.
The court further noted that the trial court had previously rejected Kuang’s application for travel permission on June 8, but subsequently allowed it without material changes in circumstances. “This Court finds merit in the Petitioner ED’s submission that permitting the Respondent to leave India at this stage may frustrate the pending proceedings and investigation in relation to serious allegations of money laundering,” the ruling stated.
Regarding the medical documents submitted in support of the request, the High Court stated they had not been verified and that the ED had not been given adequate opportunity to verify the medical condition of Kuang’s father before the travel permission was granted.
Representing the ED, Special Counsel Zoheb Hossain and advocate Pranjal Tripathi argued that Guangwen Kuang knowingly assisted in activities involving the proceeds of crime. They stated that Kuang concealed beneficial ownership, incorporated and operated entities allegedly used for acquiring and siphoning proceeds of crime, and facilitated the alleged money laundering scheme.
The investigation revealed that Vivo Mobile India Private Limited and its State Distributor Companies acquired proceeds of crime amounting to approximately Rs 2,02,41,17,72,292, according to the ED.
The ED filed a prosecution complaint on December 6, 2023, under Sections 3, 4 and 70 of the Prevention of Money Laundering Act, 2002. The trial court took cognisance of the complaint and arraigned Kuang as an accused on December 20, 2023.
During the hearing, the ED informed the High Court that the Look Out Circular issued against Kuang had been quashed by the trial court on April 29, 2026, and that this order is also under challenge. Counsel for the accused argued that the challenge was initiated only after the current petition was filed and thus its pendency cannot justify overturning the travel permission order.
The High Court will continue hearing the matter on July 2.