Vivo India remitted 50% of its turnover to China to avoid taxes, Rs 465 Crore seized: ED  

The ED said on Thursday that the Chinese smartphone manufacturer Vivo’s Indian subsidiary “remitted” about 50% of its revenue, or Rs 62,476 crore, mostly to China in order to avoid paying taxes here.

The federal investigation agency also reported that following pan-Indian raids against Vivo Mobile India Pvt. Ltd. and its 23 associated companies that began early this week on July 5, it had seized funds worth Rs 465 crore kept in 119 bank accounts by various entities, Rs 73 lakh in cash, and 2 kg in gold bars.

“ED has carried out searches at 48 locations across the country belonging to VIVO Mobiles India Pvt. Ltd. and its 23 associated companies, and seized balance of Rs. 465 Crore lying in 119 bank accounts, including FDs of 66 Crore of Vivo India, 2kg gold bars, and Rs. 73 Lakh cash,” ED tweeted.

Meanwhile, the directors of one of the companies associated with Vivo have fled India. According to sources, two of the Chinese directors of Solan, Himachal Pradesh-based company, that was associated with Vivo, have likely fled India, as ED registered a prevention of money laundering case. The ED claimed an ex-director of Vivo, Bin Lou, fled India in 2018 after incorporating many firms that are currently under its scrutiny.

The Chinese nationals were made directors in the Indian entities with fake documents.

The ED claims to have proof that Vivo executives used fraudulent paperwork to incorporate the businesses.

According to the agency, the addresses cited were really a government facility and the home of a top bureaucrat and did not belong to them.

Employees of Vivo India, including some Chinese nationals, were said to have “failed to comply with the search processes and sought to abscond, delete, and hide digital devices that were seized by the search teams,” according to the allegation.