Vivo, a Chinese smartphone manufacturer, is currently embroiled in a dispute with India’s Enforcement Directorate (ED) after the financial watchdog claimed that the business and its connections there violated the Prevention of Money Laundering Act (PMLA).
In 44 Vivo and its associates’ locations in Uttar Pradesh, Bihar, Madhya Pradesh, Punjab, Haryana, and other states throughout the nation, the ED has conducted raids. Vivo has been charged by the ED with sending close to $8 billion to China.
The ED allegedly asserted that Vivo transferred $62,476 crore, or almost 50% of its sales over five years, to its parent business in China to avoid paying taxes. After learning about an FIR lodged by the Economic Offenses Wing of the Delhi Police against a Vivo distributor based in Jammu and Kashmir, the agency filed a money laundering case against Vivo.
According to the study, the company’s Chinese stockholders employed falsified identification documents. According to the ED, the identity was fabricated to use shell firms to launder money, and “proceeds of the crime” were transported to China and other businesses to avoid Indian regulations.
Two Chinese directors of a business connected to Vivo reportedly left India after the ED raids, according to a report.
The directors worked for Solan, a Vivo-affiliated business with headquarters in Himachal Pradesh. The agency asserts that fraudulent paperwork was used to appoint the Chinese nationals as directors of the business. 119 bank accounts allegedly connected to Vivo have been closed by the ED as part of its investigation into money laundering breaches. Over 465 crore is purportedly in the accounts. Additionally, the agency has 2 kilograms of gold and 73 lakh in cash.
An official from the Chinese embassy demanded a “fair and non-discriminatory economic climate” for Chinese companies operating in the nation after the ED searched Vivo and its affiliates. After the Chinese spokesperson urged India to offer a non-discriminatory economic environment, the Indian side also retaliated.
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