ED Raids Chinese Smartphone Maker Vivo, Related Companies in Money Laundering Probe

New Delhi, Jul 5: The Enforcement Directorate (ED) raided a minimum of 44 locations throughout the nation on Tuesday in a money-laundering investigation in opposition to Chinese smartphone producer Vivo and associated corporations, officers stated.

The searches had been carried out below sections of the Prevention of Money Laundering Act (PMLA) at places in a number of states together with Delhi, Uttar Pradesh, Meghalaya and Maharashtra. A Vivo India spokesperson stated they’re cooperating with authorities. “Vivo is cooperating with the authorities to provide them with all required information. As a responsible corporate, we are committed to be fully compliant with laws,” the spokesperson stated.

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The company was conducting searches at 44 locations associated to Vivo and related firms, the officers stated. The federal company filed a cash laundering case after taking cognisance of a current Delhi Police (financial offenses wing) FIR in opposition to a distributor of the company based mostly in Jammu and Kashmir the place it was alleged that just a few Chinese shareholders in that firm cast their identification paperwork.

The ED suspects this alleged forgery was executed to launder illegally generated funds utilizing shell or paper firms and a few of these “proceeds of crime” had been diverted to remain below the radar of Indian tax and enforcement businesses. The motion is being seen as a part of the Union authorities’s steps to tighten checks on Chinese entities and the continued crackdown on such corporations and their linked Indian operatives which can be allegedly indulging in severe monetary crimes like cash laundering and tax evasion whereas working right here.

The stepped-up motion in opposition to the Chinese-backed firms or entities working in India comes within the backdrop of the navy stand-off between the 2 international locations alongside the Line of Actual Control (LAC) in jap Ladakh that’s on for greater than two years now.

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The ED in April ordered the seizure of Rs 5,551 crore price of deposits of Chinese smartphone big Xiaomi India for alleged contravention of the Foreign Exchange Management Act (FEMA). The Income-tax division raided Chinese telecom firm Huawei in February and it claimed to discovered alleged manipulation of account books for decreasing taxable revenue in India by the corporate.

Premises of plenty of these Chinese smartphone firms together with Xiaomi, Oppo and Vivo, their distributors and linked associates had been raided throughout the nation by the IT division in December final 12 months and it later claimed to have detected alleged unaccounted revenue price over Rs 6,500 crore as a result of violation of the Indian tax legislation and rules.

Vivo had a 15 per cent market share within the Indian smartphone section within the first quarter of 2022 with the cargo of 5.5 million gadgets, in keeping with market analysis and evaluation agency IDC. According to a Counterpoint analysis report, Vivo turned the highest 5G model within the Rs 10,000-20,000 value bracket section within the nation throughout March 2022 quarter.


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