An executive from Vivo, along with three others, was arrested on charges of money laundering in India on Tuesday, Reuters reported.

The arrest marks the latest development in India’s crackdown on Chinese smartphone manufacturers, including prominent brands like Vivo.

Vivo told PingWest that “Vivo India firmly adheres to its ethical principles and remains dedicated to legal compliance. The recent arrest deeply concerns us. We will exercise all available legal options.”

In July 2022, Indian law enforcement conducted searches in 48 Vivo offices across the country. According to a government note, these searches resulted in the confiscation of 7.3 million rupees ($877.18) in cash and two kilograms of gold.

Vivo is the second largest smartphone vendor in India, commanding a 17% market share, just trailing behind Samsung’s 18%, as per the second quarter figures of this year, according to data from Counterpoint Research.

In a broader context, Counterpoint Research’s data indicates that Chinese brands primarily dominate the Indian market with four out of the top five spots being occupied by Chinese companies, including Vivo, Xiaomi, Realme, and Oppo.