A Huawei spokesperson has not commented on this. The Income Tax Department last month raided Huawei’s premises in an investigation into tax evasion. These included the company’s campuses in Delhi, Gurugram and Bangalore. Sources said the officials had checked financial documents, accounts and records of the company. These included investigations into transactions related to Huawei’s business in India and abroad. Some records were also confiscated. However, the company said that its business in the country complies with the law. “Huawei is confident that our business in the country complies with all laws and regulations. We will contact relevant government departments for more information and will fully cooperate with the investigation as per the rules,” the company said in a statement.
The government has excluded Huawei from the trial of 5G services. However, telcos have been allowed to buy telecom equipment from Huawei and ZTE to maintain the network under their old agreements. However, under the National Security Directive on the telecommunications sector, telcos will need to seek government approval before entering into any new business agreements with Huawei and ZTE. The tax department conducted raids against Chinese handset companies like Xiaomi and Oppo last year. The department had claimed to have detected illegal income of more than Rs 6,500 crore in violation of the country’s tax laws and regulations.
Earlier, Huawei has been banned in some other countries including the US. These restrictions were imposed due to the apprehension of security threat. Huawei supplies equipment to many big telecom companies. Other telecom equipment companies like Nokia have benefited from restrictions on Huawei.
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