The Enforcement Directorate, the Indian financial crime agency, has accused Chinese smartphone manufacturer Vivo and its Indian affiliates of visa violations and money laundering. This revelation comes amid escalating tension between India and China regarding business activities, following India's imposition of stricter investment regulations and a ban on numerous Chinese apps after border clashes in 2020.

The accusations against Vivo and its employees were detailed in a court filing that was not made public. These accusations follow the recent arrest of a Vivo executive, Guangwen Kuang, in connection with a money laundering investigation that began in 2022, targeting India's second-largest smartphone company.

The Indian financial crime agency disclosed that at least 30 Chinese individuals entered India on business visas but worked for Vivo without disclosing their employer in their visa applications, violating Indian visa conditions. These individuals were found to have travelled to sensitive areas, such as Jammu and Kashmir and Ladakh, without the necessary permits.

Vivo, which holds a market share of 17 per cent, expressed concern over the executive's arrest and reaffirmed its commitment to legal compliance.

In the ongoing border dispute between India and China in the western Himalayas, both countries claim large areas of land controlled by the other. India restricts the entry and residence of foreigners in designated "protected" areas in Ladakh and parts of Jammu and Kashmir, requiring a permit in addition to a visa.

The Enforcement Directorate had previously raided 48 sites associated with Vivo and its affiliates in connection with the money laundering investigation. The agency accused the company of funnelling money to China through indirectly controlled firms to evade Indian taxes. The latest court filing revealed that Vivo had remitted 1.07 trillion rupees ($12.87 billion) outside India to trading companies controlled by its Chinese parent, using a "masking layer" to avoid government detection.

Despite showing no profits in statutory filings from 2014-15 to 2019-20 and not paying income taxes, the Enforcement Directorate pointed out that significant sums of money had been siphoned out of India. In July of the previous year, the agency had estimated that approximately 624.7 billion rupees ($7.5 billion) had been remitted, mainly to China.

(With inputs from Reuters)

The Enforcement Directorate, the Indian financial crime agency, has accused Chinese smartphone manufacturer Vivo and its Indian affiliates of visa violations and money laundering.

The Enforcement Directorate, the Indian financial crime agency, has accused Chinese smartphone manufacturer Vivo and its Indian affiliates of visa violations and money laundering. This revelation comes amid escalating tension between India and China regarding business activities, following India's imposition of stricter investment regulations and a ban on numerous Chinese apps after border clashes in 2020. The accusations against Vivo and its employees were detailed in a court filing that was not made public. These accusations follow the recent arrest of a Vivo executive, Guangwen Kuang, in connection with a money laundering investigation that began in 2022, targeting India's second-largest smartphone company. The Indian financial crime agency disclosed that at least 30 Chinese individuals entered India on business visas but worked for Vivo without disclosing their employer in their visa applications, violating Indian visa conditions. These individuals were found to have travelled to sensitive areas, such as Jammu and Kashmir and Ladakh, without the necessary permits. Vivo, which holds a market share of 17 per cent, expressed concern over the executive's arrest and reaffirmed its commitment to legal compliance. In the ongoing border dispute between India and China in the western Himalayas, both countries claim large areas of land controlled by the other. India restricts the entry and residence of foreigners in designated "protected" areas in Ladakh and parts of Jammu and Kashmir, requiring a permit in addition to a visa. The Enforcement Directorate had previously raided 48 sites associated with Vivo and its affiliates in connection with the money laundering investigation. The agency accused the company of funnelling money to China through indirectly controlled firms to evade Indian taxes. The latest court filing revealed that Vivo had remitted 1.07 trillion rupees ($12.87 billion) outside India to trading companies controlled by its Chinese parent, using a "masking layer" to avoid government detection. Despite showing no profits in statutory filings from 2014-15 to 2019-20 and not paying income taxes, the Enforcement Directorate pointed out that significant sums of money had been siphoned out of India. In July of the previous year, the agency had estimated that approximately 624.7 billion rupees ($7.5 billion) had been remitted, mainly to China. (With inputs from Reuters)

Indian probe agency accuses Vivo of visa violations, laundering $13 billion

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Indian probe agency accuses Vivo of visa violations, laundering $13 billion

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