Govt expresses concerns over Lava International arrest

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Govt expresses concerns over Lava International arrest

Govt expresses concerns over Lava International arrest

Industry News
Oct 16,23

Lava International, a beneficiary of the government’s production-linked incentive (PLI) scheme for domestic smartphone manufacturing, fell short of the revenue target set for fiscal year 2023.

Govt expresses concerns over Lava International arrest

Union Minister of State for Information Technology, Rajeev Chandrasekhar, expressed concern over the recent arrest of Hari Om Rai, the co-founder, chairman, and managing director of Lava International Limited, a prominent Indian smartphone brand. Speaking at an event in Noida, Chandrasekhar, one of the first government officials to comment on the matter, highlighted the significance of Lava in the Indian smartphone ecosystem. Rai, along with three other officials associated with China-based electronics brand Vivo, was granted permission for arrest by a Delhi court in a money-laundering probe initiated by the Enforcement Directorate (ED).

Chandrasekhar emphasised the government's concern regarding the case, acknowledging Lava's pivotal role in the growing smartphone segment. He hoped for a swift investigation and a just resolution for Lava and Rai. The ED accused Vivo of transferring Rs 1.25 trillion ($15 billion) to its Chinese headquarters from India since 2014 without paying taxes in India. Rai was allegedly involved in setting up Vivo’s operations in India.

Lava International, a beneficiary of the government’s production-linked incentive (PLI) scheme for domestic smartphone manufacturing, fell short of the revenue target set for fiscal year 2023.

Chandrasekhar also discussed the government’s crackdown on the online gaming sector due to concerns related to money laundering and the misuse of the internet. He highlighted the importance of legally permissible online gaming opportunities for Indian youth while emphasising the need to curb bad actors in the sector. The government has drafted a framework for permissible online gaming and is working on a consistent approach across all departments to foster innovation and growth while ensuring the sector's integrity.

Regarding online real-money games, the government has notified rules, including the establishment of self-regulatory bodies (SRBs) and certification requirements for operators. However, the appointment of SRBs has faced delays due to concerns about the undue influence of large online gaming companies on industry stakeholders. Chandrasekhar did not provide a specific timeline for the SRB appointments but mentioned that it was a "work in progress." A senior ministry official previously indicated that the first SRB appointment for the online gaming sector might occur by October.

Source: Mint