Vivo India directors Zhengshen Ou and Zhang Jie left the country as the Enforcement Directorate intensified its inquiry into the money laundering case against the Chinese firm, said sources.
The information comes a day after the agency carried out searches at 40 locations in connection with the case.
The federal agency on Tuesday conducted searches at 40 locations in Uttar Pradesh, Madhya Pradesh and some southern states in connection with a case linked to Vivo Mobile Communications and some other Chinese firms.
The case is already being investigated by the Central Bureau of Investigation (CBI).
IT department, as well as the Ministry of Corporate Affairs, is 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 Mobile Communications are under the radar for alleged financial improprieties as part of an investigation into other China-based firms.
The 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”.
Further investigations are underway.
Meanwhile, China on Wednesday expressed hope that India will conduct the ongoing investigations into the Chinese mobile manufacturer firm Vivo in accordance with the law and regulations and provide a “fair” and “non-discriminatory” business environment to China’s firms.
Asked about the ongoing raids on Vivo offices in several locations in India, Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing here that the Chinese side is closely following the developments on this matter.
“As I have stressed many times, the Chinese government always asks Chinese companies to abide by laws and regulations when doing business overseas,” he said.