THE ENFORCEMENT Directorate (ED) on Tuesday conducted searches at over 40 locations across the country in connection with a money laundering case registered against Chinese smartphone manufacturer Vivo.
The fresh reported raids come weeks after the ED conducted raids at the offices of another Chinese smartphone maker (Xiaomi) in India. The ED has officially not revealed any details about the search operations.
Subsequently, Chinese telecom handset firms and gear manufacturers have been subjected to searches by ED and the income tax department for alleged violation of financial laws. Sources said that the searches at Vivo are being carried out under sections of the Prevention of Money Laundering Act (PMLA) at locations in several states including in Delhi, Uttar Pradesh, Meghalaya, Maharashtra and others.
According to a report in Economic Times, the distributor projected itself as a subsidiary of Vivo China and submitted fake address details on Chinese shareholders Zhengshen Ou and Zhang Jie in official company records. On inquiry, one of the addresses was found to be the residence of a former Shillong Chief secretary, While the other was that of a guard room in Himachal pradesh.
Earlier, ED had conducted raids on Vivo’s rival, Xiaomi, following a tax evasion case by the Income Tax Department. The government agency had seized assets over Rs 5,550 crores. The investigation into the alleged illegal remittances was initiated in February this year. ED claimed that Xiaomi India remitted foreign currency equivalent to Rs 5551.27 crore to three foreign-based entities which include one Xiaomi group entity “in the guise of royalty.”
The company had said that they were working with authorities to clarify all misunderstandings.
