India raids office of China's Vivo over financial allegations

NEW DELHI, India: A senior government official and an industry executive told Reuters that India’s financial crime-fighting agency, the Enforcement Directorate, has raided the offices of Chinese smartphone maker Vivo.

Local media reported that the searches by the directorate are part of an investigation into suspected money laundering.

In an emailed statement, a Vivo spokesperson said, “Vivo is cooperating with the authorities to provide them with all required information. As a responsible corporate, we are committed to be fully compliant with laws.”

The Directorate has not responded to requests for comment, and sources declined to be named, as the probe has not yet been made public.

The raids came after the Enforcement Directorate launched an investigation into Xiaomi, one of the leading smartphone sellers in India, for alleged illegal remittances abroad “in the guise of royalty” payments.

In court, Xiaomi, which has denied any wrongdoing, alleged that its top executives faced threats of “physical violence” and coercion during questioning by the directorate’s officials.

The agency denied the allegations.

Due to political tensions after a border clash in 2020, many Chinese companies have struggled to conduct business in India, which has cited security concerns after banning more than 300 Chinese apps.

The Indian government has also tightened regulations covering Chinese companies wishing to invest in India.

Disclaimer: This report is automatically generated from worldwide news services. NTN is not responsible for its content and does not moderate it.

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