Winning Bizness Desk
Mumbai. The Enforcement Directorate has claimed that Zhengshen Ou and Zhang Jie, Chinese directors of GPICPL, a Vivo-linked company, had left India only last year. The ED on Thursday rectified its report, which said that these directors have left the country after 40 locations of the Chinese company were raided. The directorate on Tuesday raided more than 40 locations of Vivo Mobile Communications and some other Chinese companies in UP, Madhya Pradesh and some southern states. The CBI is already probing the matter. The ED has started a fresh investigation in the case of violation of the Money Laundering Act.
Border dispute costing dear
According to sources, Vivo's local units are under ED's scrutiny for alleged financial irregularities along with investigations into other Chinese firms. In the case of Vivo, the inquiry report was summoned in April this year in the matter of significant irregularities in ownership and financial reporting. In connection with the ED investigations against Chinese companies, the Chinese Embassy said, "Such activities undermine the confidence of foreign companies operating in the country and investing here." The border dispute in 2020 has made it difficult for many Chinese companies to do business in India. From the security point of view, India has banned more than 300 Chinese apps.
ED seized Rs 465 crore deposited in 119 bank
The Enforcement Directorate has claimed that Chinese smartphone maker Vivo sent half of its profits, or Rs 62,476 crore, to China with the intention of tax evasion. The ED has seized Rs 465 crore deposited in 119 bank accounts of various firms in raids at Vivo and its 23 subsidiaries across the country. Apart from this, cash worth 73 lakhs and two kg gold bricks have also been seized. According to the ED, its former director Bin Lou left India in 2018 after making several companies as partners in Vivo. The ED alleged that the employees of Vivo India, including some Chinese nationals, were not cooperating in its investigation. These people are trying to make digital devices disappear.