Vivo directors absconding after ED raid: Action was taken at 44 locations of the company, allegation of money laundering and tax evasion

The Enforcement Directorate (ED) has intensified the investigation of money laundering case against Chinese mobile company Vivo. Regarding this, on July 5, the ED had raided 44 places in different states across the country in connection with the money laundering probe against Vivo and its associated firms. It was only after the raid that the company’s directors Zhengshen Ou and Zhang Jie fled the country.

The ED had recently filed a money laundering case against Vivo. Chinese mobile companies are accused of sending money out of the country in the name of royalty and tax evasion. Here, China on Wednesday expressed hope that India will investigate against Vivo according to the law and rules. Provides a fair and non-discriminatory business environment for Chinese companies. Chinese Foreign Ministry spokesman Zhao Lijian said, “We are closely monitoring this matter.”

Action was also taken on Xiaomi
The ED had earlier attached assets worth Rs 5,551 crore of Chinese mobile company Xiaomi on charges of FEMA violations in April. The company was accused of illegally sending its earnings out of India. The company had done this manipulation in February this month, after which action was taken to confiscate the property.

The ED said that the tech company was misappropriating such huge amounts in the name of royalty at the behest of its parent company based in China. It was also sent to the Xiaomi Group company present in the US.

Six months ago, several locations of Xiaomi, OnePlus and Oppo were raided.

China’s mobile companies are on target of IT and ED
Like other Chinese companies, Vivo is also on the radar of IT and ED. In April, a probe was sought to see whether there were discrepancies in Vivo’s ownership and financial reports. Along with ED, CBI, the Ministry of Corporate Affairs is also keeping a close watch on the firms associated with these companies.

Action was also taken on Xiaomi
The ED had raided the Chinese smartphone maker Xiaomi. In April, the ED had seized an amount of Rs 5,551 crore from its Bangalore office. The company was accused of illegally sending its earnings out of India. The company had done this manipulation in February this month, after which action was taken to confiscate the property. The ED said that the tech company was misappropriating such huge amounts in the name of royalty at the behest of its parent company based in China. It was also sent to the Xiaomi Group company present in the US.

Huawei was raided
The Income Tax Department also raided Huawei’s offices in February. This search of the investigating agency was done in the offices of Delhi, Haryana, Gurugram and Bangalore. The officials had also seized some papers in the tax evasion case. Huawei had said in a statement that we are following every rule to run the company in India.

Chinese companies dominate the phone market
Chinese companies dominate the mobile market in the country. Companies like Xiaomi, Oppo and Vivo are earning well. All these companies have been accused of malpractices in regulatory filings and other reporting during the past few years. Along with this, there is also an allegation of sending money outside the country, after which the government started a big investigation against everyone. Many agencies are doing this investigation.