The offices of Chinese smartphone maker BBK Electronics’ Vivo and its affiliated firms were raided by the Enforcement Directorate (ED) on Tuesday, a senior government official and a business executive told Reuters.
Vivo raid comes months later Ed One of India’s top smartphone sellers, Xiaomi Corp., for alleged illegal payments made overseas “under the guise of royalties”. started the investigation
According to local media, the searches conducted by the ED are a part of a possible money laundering probe. Requests for comment from the directorate and VIVO were not immediately met. Due to the secrecy of the investigation, the sources declined to be identified.
Xiaomi has denied any wrongdoing and claimed in court that when questioned by representatives of the directorate, its top executives were subjected to threats and threats of “physical violence”, a denial of claims by the agency. it was done.
According to a previous Bloomberg story, Vivo’s investigation was requested in April to determine whether there were “significant irregularities in ownership and financial reporting.” There were also rumors of an investigation into ZTE’s books.
Following border tensions between the two countries in 2020, which resulted in several rounds of talks, surveillance of Chinese companies became more intense. Since then, more than 200 mobile applications including Tiktok have been banned.
In May, the local divisions of Vivo Mobile Communications Company and ZTE Corp were being investigated for possible financial irregularities. Xiaomi Corp. has also been the target of the investigating agency.
Contrary to data released by New Delhi that claimed India did more trade with the US last year than any other country, China said in May that it remained India’s top trading partner. It demonstrated a willingness to take action to increase regular commerce with India, pointing out that bilateral trade between China and India was valued at $125.66 billion.
“The Chinese government is closely monitoring the situation. The Chinese government always tells Chinese companies to comply with laws and regulations when doing business abroad,” HT previously quoted Chinese Foreign Ministry spokesman Zhao Lijian as addressing ZTE and Vivo’s investigation.
“Meanwhile, we strongly support Chinese companies in protecting their legal rights and interests. The Indian side must act in accordance with laws and regulations and provide a fair, just and non-discriminatory treatment for Chinese companies operating in India. Provides a discriminatory business environment.”
(with agency input)