Vivo India’s 23 associate companies transferred huge amounts of funds to it. Vivo remitted over INR 62K Cr out of India to disclose huge losses in Indian incorporated companies: ED
The ED has seized 119 bank accounts of various entities related to Vivo, with gross balance to the tune of INR 465 Cr so far in its money laundering probe
The ED had conducted searches at 48 locations across India belonging to Vivo India and its associate companies
The Enforcement Directorate (ED), which is investigating Chinese smartphone maker Vivo in an alleged money laundering case, on Thursday (July 7) said that its Indian arm transferred INR 62,476 Cr to avoid tax payments in India.
The agency’s statement came a day after it conducted searches at 48 locations belonging to VIVO Mobiles India Private Ltd (Vivo India) and its 23 associate companies across the country.
“These companies are found to have transferred huge amount of funds to Vivo India. Further, out of the total sale proceeds of INR 1,25,185 Cr, Vivo India remitted INR 62,476 Cr i.e, almost 50% of the turnover out of India, mainly to China. These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India,” the statement said.
The ED said that it has so far seized 119 bank accounts of various entities related to Vivo, with gross balance to the tune of INR 465 Cr. The seized amount includes fixed deposits of up to INR 66 Cr, 2 kg gold bars, and cash amount of up to INR 73 Lakh.
During the investigation, the ED also found that former Vivo director Bin Lou formed 18 companies in India between 2014-18. Besides, another Chinese national Zhixin Wei incorporated 4 companies in the country.
Lou and Wei were also heading Vivo India’s associate company Grand Prospect International. Lou left the country in 2018, while Wei moved to China last year. Some of the companies formed by them were Ahemdabad-based Rui Chuang, Hyderabad-based V Dream, Lucknow-based Regenvo Mobile, and Chennai-based Fangs.
Earlier today, it was reported that Vivo’s Chinese directors fled India after the ED intensified its probe.
Earlier today, China condemned the probe saying that frequent investigations by Indian agencies were deteriorating the goodwill of the companies.
Wang Xiaojian, a spokesperson of the Chinese Embassy in India, said, “The frequent investigation of Chinese companies by the Indian side disrupts the normal business activities of the companies and damages the goodwill of the companies.”
This is not the first time when Chinese companies have come under the scrutiny of Indian agencies. Earlier, Xiaomi, Huawei, Oppo, OnePlus and Alibaba were also probed by the ED.
The clashes between Indian and Chinese soldiers in 2020 in Ladakh’s Galwan Valley, in which 20 Indians were killed, led to the government tightening rules for Chinese investments in the country.
Earlier this year, the ED had seized Xiaomi’s bank accounts which had funds to the tune of INR 5,551.27 Cr.
In December 2021, the Income Tax department also conducted searches on Xiaomi’s, Oppo’s and OnePlus’ offices for alleged tax evasion.
