ED Raids Chinese Smartphone Maker Vivo, Other Firms in Money Laundering Probe

New Delhi: The Enforcement Directorate (ED) raided not less than 44 locations throughout the nation on Tuesday in a money-laundering investigation towards Chinese language smartphone producer Vivo and associated companies, officers stated. The searches had been carried out beneath sections of the Prevention of Cash Laundering Act (PMLA) at areas in a number of states together with Delhi, Uttar Pradesh, Bihar, Meghalaya and Maharashtra.Additionally Learn – Nationwide Herald Case: ED Summons Rahul Gandhi for Fifth Day on Tuesday

A Vivo India spokesperson stated they had been cooperating with authorities. “Vivo is cooperating with the authorities to supply them with all required info. As a accountable company, we’re dedicated to be totally compliant with legal guidelines,” the spokesperson stated. Additionally Learn – Motorola E32s Launched In India With 90Hz Show, 15W Quick Charging | Test Value, Specs

Bihar | Enforcement Directorate’s search continues at Vivo’s workplace at 9 To 9 mall in Patna. At the moment ED carried out searches at 44 locations throughout the nation in a money-laundering probe towards Vivo and associated companies. pic.twitter.com/aF03mT9SZL

— ANI (@ANI) July 5, 2022

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The federal company filed a cash laundering case after taking cognisance of a latest Delhi Police (financial offences wing) FIR towards a distributor of the company based mostly in Jammu and Kashmir the place it was alleged that a number of Chinese language shareholders in that firm cast their id paperwork.

The ED suspects this alleged forgery was completed to launder illegally generated funds utilizing shell or paper corporations and a few of these “proceeds of crime” had been diverted to remain beneath the radar of Indian tax and enforcement companies.

Prime factors to know for this massive story:

1. The motion is being seen as a part of the Union authorities’s steps to tighten checks on Chinese language entities and the continued crackdown on such companies and their linked Indian operatives which might be allegedly indulging in severe monetary crimes like cash laundering and tax evasion whereas working right here.
2. The stepped-up motion towards the Chinese language-backed corporations or entities working in India comes within the backdrop of the army stand-off between the 2 international locations alongside the Line of Precise Management (LAC) in japanese Ladakh that’s on for greater than two years now.
3. The ED in April ordered the seizure of Rs 5,551 crore price of deposits of Chinese language smartphone large Xiaomi India for alleged contravention of the International Trade Administration Act (FEMA).
4. The Revenue-tax division raided Chinese language telecom firm Huawei in February and it claimed to discovered alleged manipulation of account books for decreasing taxable revenue in India by the corporate.
5. Premises of quite a lot of these Chinese language smartphone corporations together with Xiaomi, Oppo and Vivo, their distributors and linked associates had been raided throughout the nation by the I-T division in December final yr and it later claimed to have detected alleged unaccounted revenue price over Rs 6,500 crore attributable to violation of the Indian tax legislation and rules.
6. Vivo had a 15 per cent market share within the Indian smartphone section within the first quarter of 2022 with the cargo of 5.5 million gadgets, based on market analysis and evaluation agency IDC.
7. In keeping with a Counterpoint analysis report, Vivo grew to become the highest 5G model within the Rs 10,000-20,000 worth bracket section within the nation throughout March 2022 quarter.