[ad_1]
The ED on Thursday said the Indian arm of Chinese smartphone maker Vivo “remitted” almost 50 per cent of its turnover, which is Rs 62,476 crore, mainly to China in order to avoid paying taxes here.
The federal probe agency also said it has seized funds worth Rs 465 crore kept in 119 bank accounts by various entities, Rs 73 lakh cash and 2 kg gold bars after its pan-India raids that were launched early this week on July 5 against Vivo Mobile India Pvt. Ltd. and its 23 associated companies.
It said an ex-director of Vivo, Bin Lou, left India in 2018 after incorporating a number of companies that are now under its scanner.
It alleged that “employees of Vivo India, including some Chinese nationals, did not cooperate with the search proceedings and tried to abscond, remove and hide digital devices which were retrieved by the search teams.”
The Enforcement Directorate (ED) raided at least 44 places across India on Tuesday in a money-laundering investigation against Chinese smartphone manufacturer Vivo and related firms.
The searches were carried out under sections of the Prevention of Money Laundering Act (PMLA) at locations in several states including Delhi, Uttar Pradesh, Meghalaya and Maharashtra.
The action is being seen as part of the Union government’s steps to tighten checks on Chinese entities and the continued crackdown on such firms and their linked Indian operatives that are allegedly indulging in serious financial crimes like money laundering and tax evasion while operating in India.
The stepped-up action against the Chinese-backed companies or entities operating in India comes in the backdrop of the military stand-off between the two countries along the Line of Actual Control (LAC) in eastern Ladakh has been ongoing for more than two years now.
China on Wednesday expressed hope that India will conduct the ongoing investigations into the Chinese mobile manufacturer firm Vivo in accordance with the law and regulations and provide a ” truly fair” and “non-discriminatory” business environment to China’s firms.
Asked about the ongoing raids on Vivo offices in several locations in India, Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing here that the Chinese side is closely following the developments on this matter.
“As I have stressed many times, the Chinese government has always asked Chinese companies to abide by laws and regulations when doing business overseas,” Zhao said.
“In the meantime, we firmly support Chinese companies in safeguarding their lawful rights and interests,” he said.
“We hope the Indian authorities will abide by laws as they carry out the investigation and enforcement activities and provide a truly fair, just and non-discriminatory business environment for Chinese companies investing and operating in India,” the spokesman said.
In New Delhi, the spokesman of the Chinese embassy said that the frequent investigations by Indian authorities into Chinese enterprises not only disrupt their normal business activities and damage their goodwill but also impede the business environment in India and will affect the confidence of market entities from other countries, including Chinese firms in invest in India.
“The essence of China-India economic and trade cooperation is for mutual benefit and win-win results,” Spokesman and Councellor Wang Xiaojian said in a statement.
The bilateral trade volume between China and India of over USD 100 billion in 2021 reflects the huge potential and broad prospect of economic and trade cooperation between the countries, he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
