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Mobile company VIVO sent 62 thousand crore rupees to China to save tax, claims ED

By Ruchi Upadhyay 
Updated Date

New Delhi: The Indian arm of Chinese smartphone maker Vivo has ‘illegally’ sent Rs 62,476 crore to China to save tax in India. ED (Enforcement Directorate) has made this claim. Along with this, the ED has also claimed to have unearthed a money laundering racket involving several Indian companies and some Chinese nationals. The ED said in a statement that Vivo India remitted almost half of its revenue to China and some other countries to avoid paying taxes in India. Illegal remittances of Rs 62,476 crore abroad which is almost half of the total turnover of the company (Rs 1,25,185 crore)

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The agency said that an amount of Rs 465 crore deposited in their bank accounts has been seized after an intensive search operation on Tuesday against Vivo Mobile India Pvt Ltd and its 23 affiliated companies. Apart from this, cash worth Rs 73 lakh and two kg gold bars have also been seized. The Enforcement Directorate has taken this action after information about the involvement of three Chinese nationals in forming 23 companies in India came to the fore.

One of these Chinese nationals has been identified as former Vivo director Bin Lau who left the country in April 2018. The other two Chinese nationals left India in the year 2021. A chartered accountant named Nitin Garg also helped in the formation of these companies.

The ED said in its statement, “These companies have sent a major part of the funds to Vivo India. Later, out of the total sales revenue of Rs 1,25,185 crore, Vivo India shipped almost half outside India. This money was mainly sent to China.

According to the ED, Vivo Mobiles Pvt Ltd was incorporated on August 1, 2014 as a subsidiary of Hong Kong-based company Multi Accord Ltd. Later 22 other companies were also formed. The agency is scrutinizing the financial statements of all

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The Enforcement Directorate has also alleged that the employees of Vivo India did not cooperate during its search operation and also tried to escape and hide digital devices. However, the agency’s search teams were successful in getting these digital information. The ED had on February 3 registered its FIR against GPICPL, a subsidiary of Vivo, on the basis of a Delhi Police FIR. The company and its shareholders were accused of having forged identity cards and giving wrong addresses.

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