Chinese Directors of VIVO Company leave as the ED keeps conducting Raids
Few Chinese stockholders in the company allegedly faked their identity documents to use shell companies to launder money obtained illegally.
In connection with a money-laundering investigation involving a Chinese smartphone manufacturing company and affiliated businesses, the Enforcement Directorate had searched 40 locations nationwide.
Zhongshan Ou and Zhang Jie, directors of Vivo, are reportedly no longer in India as the Enforcement Directorate (ED) ramps up its investigation into the money laundering case brought against the Chinese company.
On Tuesday, July 5, the Enforcement Directorate searched 40 Vivo Communication locations throughout the nation as part of a money-laundering investigation into the Chinese smartphone manufacturer Vivo and associated businesses.
By certain sections of the Prevention of Money Laundering Act, the federal agency conducted searches (PMLA). The Central Bureau of Investigation is already looking into the allegations against Vivo of money laundering.
In conjunction with a case involving Vivo Mobile Communications and a few other Chinese companies, searches were conducted in Uttar Pradesh, Madhya Pradesh, and other southern states.
The Ministry of Corporate Affairs (MCA) and the IT department in India are both closely monitoring the Chinese manufacturing companies. The raid carried out by the Ed is a continuation of the ongoing investigation of the Chinese companies.
According to people with knowledge of the matter, Vivo Mobile Communications’ local subsidiaries are being investigated for possible financial irregularities as part of a larger probe into other China-based companies.
It is known that the Ministry of Corporate Affairs pays particular attention to potential infractions, such as fraud.
To determine if there were “serious anomalies in ownership and financial reporting” in the instance of Vivo, an investigation was requested in April of this year.
On Wednesday, China expressed its hope that India will carry out the continuing investigations into the Chinese mobile manufacturing company Vivo by the law and regulations and offer Chinese businesses a “really fair” and “discriminatory” business environment.
The crackdown by the Indian government on the Chinese companies takes place against the backdrop of the ongoing military standoff and unresolved tension along the Line of Actual Control (LAC) in eastern Ladakh, which has lasted for more than two years.
The move appears to be a component of the Union government’s efforts to tighten controls over Chinese entities and to continue its crackdown on such businesses and their associated Indian agents who are allegedly engaging in serious financial crimes like money laundering and tax evasion while conducting business in India.
China desires a legal investigation on Vivo that is “really fair.”
On Wednesday, China expressed its hope that India will carry out the continuing investigations into the Chinese mobile manufacturing company Vivo by the law and regulations and offer Chinese businesses a “really fair” and “discriminatory” business environment.
Zhao Lijian, a spokesman for the Chinese Foreign Ministry, responded to questions about the ongoing raids on Vivo offices in many cities throughout India by saying that his country is actively monitoring the situation.
“As I have repeatedly emphasized, the Chinese government has always urged Chinese firms to adhere to laws and regulations when doing business abroad,” Zhao continued.
He said, “In the interim, we fully back Chinese enterprises in defending their legitimate rights and interests.”
According to the official, “we expect the Indian authorities would uphold the law as they carried out the investigation and enforcement measures and provided a fair, just, and non-discriminatory business environment for Chinese enterprises investing and operating in India.”
Tuesday saw at least 44 locations throughout India raided by the Enforcement Directorate (ED) as part of a money-laundering probe against Vivo and linked businesses, a producer of Chinese smartphones.
The searches took place in sites spanning numerous states, including Delhi, Uttar Pradesh, Meghalaya, and Maharashtra, and were conducted by sections of the Prevention of Money Laundering Act (PMLA).
According to a Vivo India spokesperson, the business is cooperating with the law.
The action is being seen as a part of the Union government’s efforts to tighten controls over Chinese entities and the ongoing crackdown on such companies and the Indian agents who work for them who are allegedly involved in serious financial crimes like tax evasion and money laundering while operating in India.
Action has been taken against Chinese-backed enterprises or other entities operating in India as a result of the prolonged military stalemate between the two countries along the Line of Actual Control (LAC) in eastern Ladakh for more than two years.
