ED raids multiple locations linked to Chinese mobile companies; Vivo 'cooperating with authorities'

These raids are taking place with respect to violations of the Prevention of Money Laundering Act (PMLA), as per reports. Earlier, the ED had seized assets of Xiaomi for alleged FEMA violations. But, the Karnataka High Court had stayed that order.

ET Now Digital

Updated Jul 5, 2022, 18:28 IST

ED raids over 30 locations linked to Chinese mobile companies

Photo : BCCL

The Enforcement Directorate (ED) is carrying out searches at multiple locations across the country linked directly and indirectly to Chinese smartphone maker Vivo and associated companies. These raids are taking place with respect to violations of the Prevention of Money Laundering Act (PMLA), as per media reports.

The agency is conducting searches at 44 places related to Vivo and associated companies, news agency PTI reported, citing officials.

The federal agency filed a money laundering case after taking cognizance of a recent Delhi Police (economic offences wing) FIR against a distributor of the agency based in Jammu and Kashmir where it was alleged that few Chinese shareholders in that company forged their identity documents.

The ED suspects this alleged forgery was done to launder illegally generated funds using shell or paper companies and some of these "proceeds of crime" were diverted abroad or put in some other businesses by skirting Indian tax and enforcement agencies.

The action is being seen as part of the Union government's continued crackdown against Chinese entities and their linked Indian operatives indulging in serious financial crimes like money laundering and tax evasion while operating here.

Vivo said it is cooperating with authorities to provide them with all the required info. As a responsible corporate, we're committed to being fully compliant with laws.

Premises of a number of Chinese smartphone makers, their distributors and linked associates were raided across the country by the Income Tax Department in December last year and it later claimed to have detected alleged unaccounted income worth over Rs 6,500 crore due to violation of the Indian tax law and regulations.

Chinese mobile phone companies have been under scanner of the Income Tax Department, ED and other investigative agencies.

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