On July 5, Indian authorities conducted a search of 44 locations across the country, in a money laundering investigation against Chinese telecom giant vivo.
The searches were conducted in accordance with the Anti-Money Laundering Act (PMLA) of India. Authorities simultaneously “raided” 44 locations in states such as Bihar, Jharkhand, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Punjab and Haryana.
In June, the distributor Grand Prospect International Communication of phone maker J&K was investigated for falsifying documents, after authorities discovered at least two Chinese shareholders of this company. used fake documents and bogus addresses.
Economic Times reported, the distributor claimed to be a subsidiary of vivo China and registered a bogus address for shareholders Zhengshen Ou and Zhang Jie on the company’s official records.
Authorities suspect the fraud was carried out for the purpose of money laundering or illegal fundraising through shell companies or on paper. According to PTI, “illegal money” was transferred abroad or to other businesses to bypass the Indian tax authorities.
Meanwhile, responding to raids, vivo said it is cooperating with authorities and providing all necessary information.
This is not the first time a Chinese company has come under the radar of the authorities. Last year, the Indian tax authority also raided vivo’s office for alleged tax evasion.
On April 29, another Chinese company, Xaomi, was also fined for violating the Foreign Exchange Regulation Act.
The crackdowns are part of India’s campaign to target Chinese entities linked to domestic companies to commit financial crimes such as tax evasion or money laundering.