ED raids 40 locations linked to Vivo, other Chinese firms in money laundering case

Story by  ATV | Posted by  Nakul Shivani | Date 05-07-2022
Enforcement Directorate
Enforcement Directorate


New Delhi

The Enforcement Directorate (ED) conducted raids at 40 locations in Uttar Pradesh, Madhya Pradesh, Bihar, and southern states, in connection with the prevention of money laundering case linked to Vivo and other Chinese firms.

The CBI has also been probing the case and has lodged a separate FIR.

In April, the ED had said they seized Rs 5,551.27 crore of Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of the Foreign Exchange Management Act in connection with the illegal outward remittances made by the company.

The company released a statement then saying, "We have studied the order from the government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with government authorities to clarify any misunderstandings."

On March 3, the Income Tax Department had said that they conducted raids against the Chinese firms dealing in telecom products and learnt that the companies were involved in tax evasion through fake receipts.

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The I-T department had detected alleged suppression of income to the tune of Rs 400 crore at that time.