Mumbai: On Tuesday, The Enforcement Directorate (ED) is taking action against the Chinese firm Vivo, which makes phones. ED is conducting raids at 44 places in the states of UP, Bihar, Madhya Pradesh and South India. The searches are being carried out under sections of the Prevention of Money Laundering Act (PMLA).
The Enforcement Directorate has registered a money laundering case against Chinese mobile phone maker Vivo and its related companies and subsidiaries. Shares of Dixon Tech slipped by two per cent following reports of ED conducting searches at more than 40 locations of Chinese mobile companies.
Last December, the Income Tax Department had raided the premises of Vivo and other Chinese mobile phone makers. The Income Tax Department had alleged that income of more than Rs 500 crore was wrongly declared. It is alleged that money is being misappropriated in the name of royalty.
ED had also questioned Manu Jain, former India chief of Xiaomi in the FEMA case. The ED then attached Xiaomi’s bank accounts worth Rs 5000 crore. The Karnataka High Court stayed the order. Xiaomi claimed that the ED forced its top officials. However, the investigating agency had denied the allegations.
