The Enforcement Directorate ED on Tuesday carried out a detailed raid on the office of the Chinese company Vivo, according to several reports.
ED conducted the raid across 44 places in connection with the Vivo company. The company is being enquired in accordance to a possible money laundering case.
Several reports suggest that the raids are being carried out with reference to several sections of the Prevention of Money Laundering Act.
Previously a month ago the Enforcement Directorate had opened an enquiry against the Xiaomi corporation one of India’s leading smartphone sellers in relation to alleged illegal payments made abroad. The ED has previously also issued a decree freezing Xiaomi India’s bank assets totalling more than Rs 5500 crores. The ED decision has been contested by Xiaomi, the market leader in smartphones, and the Karnataka High Court is expected to rule on the matter today.
According to some media outlets, Vivo in a statement has said, “As a responsible corporate, we’re committed to being fully compliant with laws.”
It is being said that initially in April a look into the Vivo company was requested. Local divisions of Vivo Mobile Communications Co. and ZTE Corp. were being investigated for potential financial violations in May. In addition, the investigative agency has also kept a tight look on Xiaomi Corporation.
It is being reported that the places related to Vivo that are being raided are located in Uttar Pradesh, Bihar, Madhya Pradesh, Punjab, Haryana, and other states.
Besides Enforcement Directorate, The Income Tax department of the Indian government is also keeping a closer track of Chinese companies and reportedly conducted several raids across some 15 locations of Xiaomi, Oppo, OnePlus, Dixon, and other companies last year.
The development occurs after two years of government action against Chinese smartphone manufacturers. According to sources, the company was being investigated by the CBI for alleged PMLA violations before being transferred to the ED.
Grand Prospect International Communication, a distributor for Vivo mobile company in Jammu and Kashmir came under scrutiny from enforcement agents last month after the corporate affairs ministry discovered that at least two Chinese shareholders had filed falsified paperwork and false Indian addresses.
The Chinese companies have been under constant scan since 2020 when the tensions between India and China escalated on the borders. Following the tensions, a significant number of Chinese companies and apps were banned in India including TikTok, shareIt, club factory etc. Several Chinese products were also banned.
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