The Enforcement Directorate (ED) mentioned on Thursday that Chinese smartphone maker Vivo illegally transferred Rs 62,476 crore, which is sort of 50% of its turnover, to China to keep away from paying taxes in India.
The company additionally mentioned 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 carried out nationwide raids on Vivo on Tuesday in a cash laundering probe.
The company mentioned on Thursday that three Chinese nationals, all of whom left India throughout 2018-21, and one different particular person from the nation, included as many as 23 corporations in India during which they have been additionally helped by a chartered accountant, Nitin Garg.
Among the foreigners, one recognized as Bin Lou was an ex-director of Vivo and in keeping with the ED, he left India in April, 2018. Two others — Zhengshen Ou and Zhang Jie — left the nation in 2021, it mentioned.
“These (23) companies are found to have transferred huge amounts of funds to Vivo India. Further, out of the total sale proceeds of Rs 1.25 trillion, Vivo India remitted Rs 62,476 crore or almost 50% of the turnover out of India, mainly to China,” an ED assertion mentioned.
After Indo-China border tensions rising in mid-2020, the federal government has been taking a tricky stance towards Chinese investments. It banned greater than 300 Chinese 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 telecom handset corporations and kit producers have been subjected to searches by ED and the revenue tax division for alleged violation of monetary legal guidelines.
Vivo had mentioned on Tuesday that ‘as a responsible corporate, we are committed to be fully compliant with laws’. The ED mentioned that whereas it adopted ‘all due procedures as per law’ throughout the raids carried out below the legal sections of the Prevention of Money Laundering Act (PMLA), it alleged ‘employees of Vivo India, including some Chinese nationals, did not cooperate with the search proceedings and tried to abscond, remove and hide digital devices which were retrieved by the search teams’.
Recently, intelligence businesses had discovered that the information of home clients was being ‘illegally’ transferred to servers of Chinese corporations.
Source: www.financialexpress.com”