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After Xiaomi and Vivo, another Chinese smartphone company has found itself in the crosshairs of the Indian authorities, this time its Oppo.
According to the Directorate of Revenue Intelligence (DRI), Oppo is accused of evading customs duties to the tune of Rs 4,389 crores. According to the DRI's statement, searches were conducted at the office of the smartphone manufacturer and its KMPs.
''This mis-declaration resulted in wrongful availment of ineligible duty exemption benefits by Oppo India amounting to Rs 2,981 crores. Among others, senior management employees and domestic suppliers of Oppo India were questioned, who in their voluntary statements accepted the submission of wrongful description before the Customs Authorities at the time of import,'' the DRI said in its statement.
RBI imposes crores worth of penalties on Ola, read more.
The investigation conducted into the company revealed that alongside the wrongful submissions leading to evasion of Rs 2,981 crores, it was also revealed that the company made payments or provisions for Royalty and License fees, but the same was not included in the value of goods imported, leading to a further evasion of Rs 1,408 crores.
As incriminating evidence was recovered from the company's premises, a show cause notice was issued to the company after the completion of the investigation. The notice has also proposed several penalties to be levied on the company, its employees, and its parent company, Oppo China.
The company has said that it is reviewing the notice served to them and that they will be issuing a statement in response soon. The company also said that it is a responsible corporation and will be working with the government authorities to take any necessary remedial steps.
As the government's proceedings continue to bring in major Chinese companies, the Chinese state-run media has asked the Indian legal system to be fair, adding that it would hurt India's business environment if the courts do not handle this case reasonably or discloses information in a timely manner.
The Chinese Embassy said that these frequent investigations impede the enterprises' operations and damage their goodwill. Moreover, the statement also said that the continuous interruption in business activities tends to "chill the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India”.
Article by Aman Agarwal.
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