Vivo reportedly transferred nearly $8 billion to its parent company in China
- A report has revealed that
Vivoreportedly transferred nearly $8 billion (₹62,000 crore) to its parent company in China.
- The Enforcement Directorate had conducted raids across 44 locations belonging to Vivo and its associates.
- The ED is reportedly investigating the transfer and why the company reported its profits as expenditure.
AdvertisementThe Enforcement Directorate (ED), the country’s financial watchdog recently conducted raids across 44 offices belonging to
According to a report by Business Today, Vivo reportedly transferred nearly $8 billion (₹62,000 crore) to its parent company in China over a five year period from 2017 to 2021.
"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 familiar with the matter told Business Today.
The above report has revealed that the company’s total turnover during the period was around ₹1.25 lakh crore. This shows it transferred nearly half of its turnover to its Chinese parent, if the reported numbers are correct.
The money laundering case against Vivo was filed by ED after taking cognizance of a FIR filed by the Economic Offenses Wing of the Delhi Police against a Vivo distributor based in Jammu and Kashmir. The FIR alleged that Chinese shareholders of the company had forged their identity documents.
According to the above report, ED suspects that the identity was forged to launder money using shell companies and “proceeds of the crime” have been sent to China and other businesses to bypass Indian rules.
The Press Trust of India in a tweet citing ED has said the actual amount remitted by Vivo is around ₹62,476 crore. The tweet further added that the amount was transferred to avoid taxes in India.
ED seizes funds, cash and gold from Vivo
Raids on Vivo: ED seizes funds of Rs 465 crore, Rs 73 lakh in cash and 2 kg gold under anti-money laundering law— Press Trust of India (@PTI_News) 1657195616000
The Enforcement Directorate has reportedly seized ₹456 crore in funds, ₹73 lakh in cash and 2 kg gold from Vivo under the money laundering act.
Second Chinese smartphone maker to come under the ED scanner
This is the second instance of a Chinese company coming under the scanner of the Indian authorities for remitting money outside India. Earlier, Xiaomi came under the ED scanner for remitting over ₹5,500 crore.
AdvertisementA report has also revealed that two Chinese directors of a company related to Vivo have fled India after the ED raids.
The two directors were reportedly working for Solan, a Himachal Pradesh-based company that was associated with Vivo. They were allegedly made directors in the company using forged documents.
After Xiaomi, Vivo comes under the Enforcement Directorate’s scanner
EXCLUSIVE: 84% of the ₹5,551.27 crore of the alleged illegal remittance by Xiaomi India were to the Qualcomm Group
China unhappy with Vivo raids, says frequent probes 'chill' investor confidence
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