/ED Raids Vivo, Related Firms in Money Laundering Probe

ED Raids Vivo, Related Firms in Money Laundering Probe

The Enforcement Directorate (ED) on Tuesday conducted searches at 40 locations in Uttar Pradesh, Madhya Pradesh, and some southern states in connection with a case linked to a Chinese firm.
Multiple ED teams have been conducting simultaneous raids since morning, said sources, adding the case is already being investigated by the Central Bureau of Investigation (CBI).

IT department, as well as the Ministry of Corporate Affairs, are also keeping a close eye on the Chinese manufacturing firms. The ED raid is an extension of the probe against Chinese firms.

The ED conducted these searches with respect to violations of the Prevention of Money Laundering Act (PMLA).

Sources said that local units of Vivo are under the radar for alleged financial improprieties as part of an investigation into other China-based firms.

Ministry of Corporate Affairs is learnt to have a special focus on potential violations including fraud.

In the case of Vivo, an inquiry was sought in April this year to detect if there were “significant irregularities in ownership and financial reporting”.

The ED has also been investigating the Chinese smartphone giant Xiaomi since February. On April 30, the agency said the smartphone maker had illegally transferred funds abroad to three entities, including one from a Xiaomi group entity, “in the guise of royalty” payments.

It seized $725 million (roughly Rs. 5,624 crore) from the local bank accounts of Xiaomi, though an Indian court has put that decision on hold following a legal challenge by Xiaomi.

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