Officials said 44 locations were searched as part of a money-laundering probe into Vivo and other Chinese smartphone manufacturers.
The Enforcement Directorate (ED) conducted raids on at least 44 locations around the nation on Tuesday as part of an investigation into allegations of money laundering involving the Chinese smartphone maker Vivo and affiliated businesses, according to the authorities.
The searches were conducted at sites in several states, including Delhi, Uttar Pradesh, Meghalaya, and Maharashtra, by provisions of the Prevention of Money Laundering Act (PMLA).
A spokesman for Vivo India said that the company is working along with the authorities.
“Vivo is helping the authorities by providing them with all of the information that they want and is collaborating with them. We are dedicated, as a responsible business entity, to being in full compliance with all applicable laws, “a representative of the company said.
According to the authorities, the government agency was conducting searches at 44 locations affiliated with Vivo and firms associated with it.
The federal agency filed a money laundering case after taking cognizance of a recent FIR against a distributor of the agency based in Jammu and Kashmir that was filed by the economic offenses wing of the Delhi Police. In that FIR, it was alleged that a few Chinese shareholders in that company forged their identity documents. The case was filed after the federal agency took cognizance of the FIR.
The Enforcement Division has a hunch that the alleged forgery was carried out to conceal illegally obtained wealth by using front or paper companies. Additionally, the ED believes that some of the “proceeds of crime” were redirected to avoid the attention of Indian tax and law enforcement authorities.
The action is being seen as part of the Union government’s steps to tighten checks on Chinese entities and the continued crackdown on such firms and their linked Indian operatives who are allegedly indulging in serious financial crimes like money laundering and tax evasion while operating here. In addition, the action is being seen as part of the ongoing crackdown on such firms and their linked Indian operatives.
The escalation of action taken against Chinese-backed enterprises or organizations operating in India takes place against the background of a military standoff between the two nations that has been going on for more than two years along the Line of Actual Control (LAC) in eastern Ladakh.
The Enforcement Directorate (ED) issued an order in April for the confiscation of deposits of Rs 5,551 crore worth of Chinese smartphone manufacturer Xiaomi India for suspected violations of the Foreign Exchange Management Act (FEMA).
In February, the Revenue-tax department conducted raids at the Chinese telecom corporation Huawei, and it claimed to have uncovered evidence that the business had manipulated its account books to reduce its taxable income in India.
The premises of several of these Chinese smartphone companies, including Xiaomi, Oppo, and Vivo, as well as their distributors and linked associates, were raided by the I-T department across the country in December of the previous year. The department later claimed that it had discovered alleged unaccounted income worth over Rs 6,500 crore due to a violation of the Indian tax law and regulations.
IDC, a company that specializes in market research and analysis, said that Vivo had a market share of 15% in the Indian smartphone category in the first quarter of 2022 thanks to the company’s shipping of 5.5 million handsets in that time period.
Vivo reportedly became the most popular 5G brand in the nation during the March 2022 quarter, according to a study report compiled by Counterpoint. The pricing bracket in question ranged from Rs 10,000 to Rs 20,000.
