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China hopes for a ‘fair’ investigation as the Indian ED raids Vivo’s offices

According to IANS, while India’s financial crime-fighting agency Enforcement Directorate (ED) continues to raid the offices of Chinese smartphone maker Vivo, directors of one of the organizations affiliated with the brand have departed the country. On Tuesday, the Indian finance agency began its raid on Vivo (June 6th).

The searches, according to Reuters, were part of an investigation into possible money laundering. China has expressed optimism that India will handle the investigations in a ‘fair’ and ‘non-discriminatory’ manner in response to reports of the raids. According to reports, two Chinese directors of a Himachal Pradesh-based firm affiliated with Vivo are suspected to have left. The investigation also claimed that Chinese people were appointed as directors of Indian companies using forged paperwork.

However, a Vivo spokesman indicated in an email that the business was ‘cooperating with authorities to provide them with all necessary information.  As a responsible corporation, we are dedicated to following all applicable laws’. The Chinese Foreign Ministry’s spokesman, Zhao Lijian, reacted to concerns regarding the continuing raids on Vivo offices in numerous locations throughout India by noting that his nation is closely following the situation.

‘As I have often stated, the Chinese government expects Chinese enterprises to follow rules and regulations while conducting business abroad,’ he said, adding that ‘we strongly back Chinese companies in defending their legitimate rights and interests.  We expect that the Indian side would conduct investigations and law enforcement in line with laws and regulations, and that the Indian side will sincerely create a fair, just, and non-discriminatory business environment for Chinese firms investing and operating in India,’ he added.

According to ED sources, during the raid operations, the agency has learnt of money laundering of roughly $1200 million (INR 10,000 crore). The Vivo raids came months after the Enforcement Directorate launched an investigation into Xiaomi Corp., one of India’s largest smartphone suppliers, for alleged illegal payments made abroad in the guise of ‘royalty’.  During the searches, a total of around $725 million (INR 5,551 crore) was confiscated.

Xiaomi has denied any wrongdoing and claimed in court that when its senior executives were questioned by officials from the Directorate, they were subjected to pressure and threats of ‘physical harm’.  The agency disputed the charges.

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