New Delhi: A working day right after it was claimed that two major executives of its associated enterprise likely fled India, following raids, the ED on Thursday explained that Chinese smartphone enterprise Vivo was involved in massive ‘hawala’ transactions.

It said that out of the overall sale proceeds of Rs 1,25,185 crore, Vivo India remitted Rs 62,476 crore — practically 50 per cent of the turnover out of India, largely to China.

A senior ED official claimed that they carried out queries at 48 spots across the region belonging to Vivo Mobiles India Private Ltd and its 23 affiliated companies these kinds of as Grand Prospect Global Communication Pvt Ltd (GPICPL), and so significantly, 119 financial institution accounts of numerous entities with gross stability to the tune of Rs 465 crore, such as FDs to the tune of 66 crore, of Vivo India, 2 kg gold bars, and income amounting to somewhere around Rs 73 lakh has been seized beneath the provisions of the PMLA.

In accordance to the ED, all because of techniques as for each regulation have been adopted in the course of the mentioned operations at just about every premises but staff of Vivo India, like some Chinese nationals did not cooperate with the search proceedings and experienced experimented with to abscond, clear away and cover electronic units which were retrieved by the lookup groups.

Vivo Mobiles India Pvt Ltd was integrated on August 1, 2014 as a subsidiary of Hong Kong-based Multi Accord Ltd, and was registered at ROC Delhi. The GPICPL was registered on December 3, 2014 at ROC Shimla, with registered addresses of Solan, Himachal Pradesh and Jammu.

The reported firm was included by Zhengshen Ou, Bin Lou and Zhang Jie with the assist of chartered accountant Nitin Garg.

Lou remaining India on April 26, 2018 while Ou and Jie still left India in 2021.

In February this yr, the ED initiated a Prevention of Revenue Laundering case versus them on the basis of an FIR lodged at Delhi’s Kalkaji law enforcement station underneath sections 417, 120B and 420 of IPC from GPICPL and its Director, shareholders and certifying professionals and so forth on the foundation of criticism submitted by Ministry of Company Affairs.
As for every the FIR, GPICPL and its shareholders had made use of cast identification documents and falsified addresses at the time of incorporation. The allegations have been identified to be accurate as the investigation exposed that the addresses outlined by the administrators of GPICPL did not belong to them, but in actuality it was a governing administration constructing and property of a senior bureaucrat.

The ED’s investigation disclosed that the exact same director of GPICPL, Lou, was also an ex-director of Vivo. He experienced included numerous corporations across the nation spread throughout several states. A full of 18 companies had been set up close to the same time, just soon after the incorporation of Vivo in 2014-15, whilst a different Chinese countrywide Zhixin Wei had incorporated even further 4 companies.

These entities include Rui Chuang Technologies Private Ltd (Ahmedabad), V Desire Technological innovation & Interaction Private Ltd (Hyderabad), Regenvo Cell Private Ltd (Lucknow), Fangs Know-how Private Ltd (Chennai), Weiwo Communication Personal Ltd (Bengaluru), Bubugao Interaction Non-public Ltd (Jaipur), Haicheng Cell (India) Private Ltd (New Delhi), Joinmay Mumbai Electronics Non-public Ltd (Mumbai), Yingjia Conversation Non-public Ltd (Kolkata), Jie Lian Mobile India Personal Ltd (Indore), Vigour Cellular India Private Ltd (Gurugram), Hisoa Digital Private Ltd (Pune), Haijin Trade India Private Ltd (Kochi), Rongsheng Cell India Personal Ltd (Guwahati), Morefun Communication Private Ltd (Patna), and several other people, the ED explained.

These corporations were discovered to have transferred huge amounts of money to Vivo India, which remitted them out of India, largely to China.
These remittances had been built in buy to disclose massive losses in Indian included corporations to stay away from payment of taxes in India, the ED mentioned.

