The Enforcement Directorate (ED) stated on Thursday that Chinese language smartphone maker Vivo illegally transferred Rs 62,476 crore, which is nearly 50% of its turnover, to China to keep away from paying taxes in India.
The company additionally stated submit the raids, it seized funds price Rs 465 crore saved in 119 financial institution accounts by numerous entities concerned within the case, Rs 73 lakh money and a pair of kg gold bars. As reported earlier, the ED had performed nationwide raids on Vivo on Tuesday in a cash laundering probe.
The company stated on Thursday that three Chinese language nationals, all of whom left India throughout 2018-21, and one different individual from the nation, integrated as many as 23 firms in India wherein they have been additionally helped by a chartered accountant, Nitin Garg.
Among the many foreigners, one recognized as Bin Lou was an ex-director of Vivo and in line with the ED, he left India in April, 2018. Two others — Zhengshen Ou and Zhang Jie — left the nation in 2021, it stated.
“These (23) firms are discovered to have transferred enormous quantities of funds to Vivo India. Additional, out of the whole sale proceeds of Rs 1.25 trillion, Vivo India remitted Rs 62,476 crore or nearly 50% of the turnover out of India, primarily to China,” an ED assertion stated.
After Indo-China border tensions rising in mid-2020, the federal government has been taking a tricky stance in opposition to Chinese language investments. It banned greater than 300 Chinese language apps the identical 12 months and barred distributors from nations sharing land border with India from bidding for any public tasks with out its prior approval.
Subsequently, Chinese language telecom handset corporations and equipment producers have been subjected to searches by ED and the revenue tax division for alleged violation of monetary legal guidelines.
Vivo had stated on Tuesday that ‘as a accountable company, we’re dedicated to be totally compliant with legal guidelines’. The ED stated that whereas it adopted ‘all due procedures as per legislation’ throughout the raids performed beneath the prison sections of the Prevention of Cash Laundering Act (PMLA), it alleged ‘staff of Vivo India, together with some Chinese language nationals, didn’t cooperate with the search proceedings and tried to abscond, take away and conceal digital units which have been retrieved by the search groups’.
Just lately, intelligence businesses had discovered that the info of home clients was being ‘illegally’ transferred to servers of Chinese language firms.
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