Vivo 'remitted' Rs 62,476 crore to China to avoid tax in India: ED
The Enforcement Directorate had alleged that '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.'
FollowThe Indian arm of Chinese smartphone maker Vivo 'remitted' almost 50 per cent of its turnover, amounting to Rs 62,476 crore, to China to avoid paying taxes, the Enforcement Directorate said on Thursday.
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The ED on Thursday stated the raids it carried out on July 5 across the country against Vivo Mobile India Private Limited and its 23 associated companies. Following the action, the central agency seized funds worth Rs 465 crore from 119 bank accounts by various entities, 2 kg gold bars and Rs 73 lakh cash.
Bin Lou, who was the ex-director of Vivo, left India in 2018 after he incorporated several firms, which are now under the scanner, the ED said, alleging that '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.'
China cries foul
Beijing had expressed displeasure yesterday over the action against Vivo and threw its weight behind the mobile manufacturer firm.
While seeking a non-discriminatory environment for China's firms, a Chinese embassy spokesman said frequent investigations by Indian authorities into the operations of Chinese enterprises could dent the confidence that global companies and market entities have in the Indian business environment.Â
Defending Vivo, Chinese Foreign Ministry spokesman Zhao Lijian said that while the Chinese government has always asked Chinese firms to abide by laws and regulations when doing business overseas, its government firmly supports them in safeguarding their lawful rights and interests.
The ED had carried out raids at around 44 premises in several states like Maharashtra, Delhi, Uttar Pradesh and Meghalaya as part of its probe under sections of the Prevention of Money Laundering Act (PMLA). The ED searches are being seen as part of the Narendra Modi government's attempts to tighten checks on Chinese entities and crack down on financial crimes like money laundering and tax evasion allegedly committed while operating in India.
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