Chinese mobile manufacturing company Vivo is in trouble after Enforcement Directorate (ED) launched a money laundering case against the company. ED has raided premises and related firm of Vivo company in 44 locations in 22 states on Tuesday and Wednesday. China has responded saying they hope for a fair probe.
China on Wednesday expressed hope that the India will abide by laws as they carry out investigation and enforcement activities. They also hoped that India will provide a truly fair, just and non-discriminatory business environment for Chinese companies investing and operating here.
Read | Money laundering probe: ED conducts raids against Vivo, associated companies at 44 places
Meanwhile, some reports suggest that Vivo's directors Zhengshen Ou and Zhang Jie have fled the country after seeing the ED tightening the noose into the money laundering case against the Chinese firm. News agency ANI quoted sources as saying that seeing the growing troubles of the company, both the directors have fled for fear of investigation.
According to the information received, the ED suspects money laundering of millions of rupees, due to which this action is being taken. On Tuesday and Wednesday, 44 locations were raided across the country including Delhi, Uttar Pradesh, Meghalaya, Maharashtra. However, the directors of the company were not seen during this entire operation. Due to this, the ED suspects that both have fled the country.
Let us tell you that the CBI is already investigating this case. In India, along with the IT department, the Ministry of Corporate Affairs (MCA) is also keeping a close watch on Chinese manufacturing firms. The raids by the ED are an extension of the ongoing investigation against Chinese firms.
Local units of Vivo Mobile Communications are on the radar for alleged financial irregularities as part of investigations into other Chinese firms. In April, the ED seized Rs 5,551.27 crore of Xiaomi Technology India Private Ltd lying in the bank accounts under the provisions of Foreign Exchange Management Act (FEMA) connection with the illegal outward remittances made by the company.
