Vivo in trouble? ED conducts raids on Chinese firm across 44 places in India
The Enforcement Directorate conducts raids across 44 places related to Chinese company Vivo in a case of money laundering. Check details.
Vivo seems to be in trouble. Earlier today, the Enforcement Directorate has conducted raids across 44 places related to Chinese smartphone manufacturer Vivo in relation to a money laundering case. The searches are being carried out under sections of the Prevention of Money Laundering Act. The raids are carried out in places that related to Vivo and its associated companies. More details are yet to be obtained regarding the matter.
Previously, Vivo's J&K distributor Grand Prospect International Communication came under the scanner of enforcement agencies. It was found by the corporate affairs ministry that at least two Chinese shareholders submitted forged documents and false Indian addresses. The distributor showed itself as a subsidiary of Vivo China and submitted fake address details on Zhengshen Ou and Zhang Jie; two of the company's shareholders.
Vivo locations raided by the ED
At the moment, more details on the matter are awaited. Prior to this, the ED was probing another smartphone maker with a similar money laundering case – Xiaomi India. The ED at the time seized funds worth over ₹5,551 crore from Xiaomi for violating the Indian foreign exchange law. There were huge amounts disguised as royalties that were remitted on the instructions of their Chinese “parent group" entities, said the ED report. Xiaomi denied all such claims, saying that it operated under laws of the local market.
Considering Vivo, the details are yet to be installed. The trouble comes at a time when Vivo is readying some new product launches in India. The company recently announced its Vivo X80 series of flagship smartphones, and is now preparing to launch the first smartphone in India with the Snapdragon 8+ Gen 1 chip under iQOO sub-brand. Called the iQOO 9T, this phone is expected to help the company solidify its space in the premium smartphone space.
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