The ongoing Enforcement Directorate (ED) probe into alleged money-laundering by smartphone maker Vivo, owned by China’s BBK Electronics, has revealed that the Indian unit transferred nearly Rs 62,000 crore to its parent entities in China over a five-year period beginning 2017 and up to 2021.
Sources have told Business Today TV that the ED investigation has come across data that suggests the total turnover of Vivo India during the above period was nearly Rs 1.25 lakh crore.
“The agency is investigating why Vivo India declared profit as expenditure in its balance sheet and transferred substantial sums of money to China,” an official said.
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The ED had conducted searches at 44 places across the country in a money-laundering probe against Vivo and related firms on July 5.
The ED filed a money laundering case after taking cognisance of a recent Delhi Police (Economic Offences Wing) FIR against a distributor of the company based in Jammu and Kashmir. The allegation is that a few Chinese shareholders in that company forged their identify documents.
The ED suspects this alleged forgery was done to launder funds using shell or paper companies and some of the ”proceeds of the crime” were diverted abroad, and also diverted to some other businesses in order to bypass Indian rules and regulations.
Meanwhile, China’s embassy in New Delhi has issued a statement saying that multiple investigations by Indian enforcement agencies into Chinese companies are damaging the confidence of foreign entities investing and operating in the country.
Such frequent investigation “impedes the improvement of business environment in India and chills the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India,” the statement added.
Also Read: Vivo directors flee India as ED intensifies money laundering probe: Report
The enforcement agency is expected to provide details of the matter soon, as it concludes its probe and files formal charges.
Vivo has said that it is cooperating with authorities and is committed to full compliance with Indian laws.
Earlier this April, the ED ordered for seizure of Rs 5,551 crore worth deposits of leading Chinese smartphone maker Xiaomi India for alleged contravention of the Foreign Exchange Management Act. (MSN)
