


The Enforcement Directorate’s (ED’s) cash-laundering probe into cell cell phone maker Vivo India has revealed the firm, to stay clear of paying out taxes in India, remitted about Rs 62,476 crore of its turnover to China among 2017 and 2021.


In accordance to the agency, 18 companies that were allegedly included fraudulently aided the smartphone maker to transfer 50 for each cent of the turnover exterior India, mainly China. The sale proceeds all through the interval stood at Rs 1.25 trillion.

So much, 119 bank accounts of entities with a gross stability of Rs 465 crore, like set deposits of Rs 66 crore of Vivo India, gold bars of 2 kg, and approximately Rs 73 lakh in money, have been seized less than the provisions of the Prevention of Money Laundering Act (PMLA), the agency mentioned.


In accordance to an formal, Vivo India’s books showed losses in most of its associate companies when transferring funds to China.


The results have come after the agency experienced searched the premises of the smartphone maker and its 23 associate providers in 48 destinations of the region early this week. Vivo India was included in August 2014 as a subsidiary of Multi Accord Ltd, a Hong Kong-dependent enterprise, and was registered in Delhi.


The investigation arrived after the Ministry of Company Affairs (MCA) experienced submitted a law enforcement grievance against Vivo’s associate company Grand Prospect Global Conversation Pvt Ltd (GPICPL), its administrators, shareholders, certifying industry experts, etc.


It was alleged that GPICPL and its shareholders had utilized solid identification files and wrong addresses at the time of incorporation.

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“The allegations were observed to be true as the investigation revealed that the addresses described by the directors of GPICPL did not belong to them, as they had utilised government making, senior authorities official property addresses as handle proof,” the ED claimed.


The ED also reported the business was incorporated by Zhengshen Ou, Bin Lou and Zhang Jie with the enable of chartered accountant Nitin Garg.


The company’s administrators fled the place. Just one director, Bin Lou, left India in April 2018. Two some others, Zhengshen Ou and Zhang Jie, still left India in 2021, in accordance to officers. Bin Lou was a director of GPICPL also. He experienced included many companies in the region unfold across a variety of states.


“A whole of 18 businesses has been integrated just following Vivo has been set up in the calendar year 2014-15. Later, a different Chinese Nationwide Zhixin Wei had integrated 4 extra businesses.


“The staff of Vivo India, such as some Chinese nationals, did not cooperate with the search proceedings and experienced tried out to abscond, get rid of and hide digital devices which were being retrieved by the lookup teams,” the ED mentioned.


Some affiliate entities are Rui Chuang Systems (Ahmedabad), V Dream Engineering & Interaction (Hyderabad), Regenvo Cellular (Lucknow), Fangs Technologies (Chennai), Weiwo Communication (Bengaluru), Bubugao Communication (Jaipur), Haicheng Cell (India) (New Delhi), Joinmay Mumbai Electronics (Mumbai), and Yingjia Communication (Kolkata).


In the meantime, the Chinese embassy in New Delhi has issued a assertion declaring numerous investigations by Indian enforcement agencies into Chinese providers are harming the self-confidence of overseas entities investing and working in the place.

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