Jobaaj Stories
After Xiaomi, another Chinese smartphone manufacturer has become the target of the ED. This time it is one of the most renowned brands in India: Vivo.
The Enforcement Directorate (ED) has conducted raids in 44 places across the country as it has filed a case under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 against the company and all related firms.
LIC Mutual Funds to absorb IDBI Banks Mutual Funds, read more.
The ED's investigation against the Chinese phone maker is based on an FIR registered by the Delhi Police against a distributor of the company in J&K where some Chinese nationals had forged their documents. According to ED sources, the Chinese phone majors are allegedly making huge remittances to China, overbooking expenses towards consultancy and software services while evading taxes on income made in India.
"Vivo is cooperating with the authorities to provide them with all required information. As a responsible corporate, we are committed to being fully compliant with laws," the company said.
This is not the first time the Indian government has acted against Chinese firms. Ever since the Galwan standoff, the Indian government has banned several apps such as Tiktok & PUBG, claiming them to be against national security.
In December 2021, the premises of top smartphone manufacturers like Xiaomi, Oppo, and Vivo were raided by the IT Department on suspicion of tax evasion. In February 2022, the IT Department raided Huawei's locations all over the country under suspicion of tax evasion.
In March 2022, the IT Department had raided the premises of Chinese firms dealing in telecom products under suspicion that income was being suppressed via fake receipts. We at Jobaaj reported about the ED's actions against Xiaomi in May 2022, when it seized funds to the tune of Rs 5,551 crores belonging to the company for violations against FEMA regulations.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
