hear the news
Vivo directors Zhengshen Ou and Zhang Jie have fled India after the Enforcement Directorate intensified its money laundering probe against the Chinese firm. Sources have given this information. On July 5, the ED had raided 44 locations across the country in a money laundering probe against Vivo and its associated firms.
This action was taken by the ED in many states of South India including Uttar Pradesh, Bihar, Madhya Pradesh. According to the information, this action was taken under the Prevention of Money Laundering Act. CBI is also investigating in this matter. Chinese firms are already the target of Indian investigative agencies. Vivo had clarified on its part in this matter, saying that it is cooperating with the authorities to provide all the necessary information. As a responsible corporate, we are committed to fully comply with the laws.
The case of financial irregularities came to the fore
In May this year, Chinese firms ZTE Corp and Vivo had to face investigation due to financial irregularities. In addition Xiaomi Corp. is also under investigation. Actually, after the border confrontation between India and China, the Indian government has taken a tough stand on Chinese companies. Till now more than 200 Chinese mobile apps including Tiktok have been banned.
220 crores has been recovered from the company
Earlier, the State Goods and Services Tax (SGST) department has recovered Rs 220.13 crore by attaching the account of mobile phone manufacturer Vivo India Private Limited to HSBC Bank in Gurugram. This action has been taken in the case of availing Input Tax Credit (ITC) in excess of Rs 110.06 crore while filing tax returns in violation of rules in the year 2020.