The Enforcement Authority of India is conducting a large-scale investigation into the Vivo India unit,
What does it mean?
The statement said that the company transferred toChina 62,476 crore Indian rupees (about $ 8 billion), which, for a minute, is about half of all sales of Vivo India. The management comment noted that this was done “to expose the huge losses of Indian listed companies” and in order not to pay taxes on this money.
Money transfers were made through a dummya company based in Hong Kong - Vivo India was registered as its subsidiary and had smaller divisions in every major Indian region that operated independently, at least for bookkeeping. They then funneled all profits to Vivo India, which, as a subsidiary, channeled the funds directly to its parent company.
During the investigation, 119 bankingVivo India accounts and confiscated 465 crore Indian rupees (about $58 million) in these accounts, 2 kg of gold bars, an additional 66 crores Indian rupees ($8.3 million) in FD and 73 lakhs (just under $100 thousand) in cash.
At the same time, representatives of Vivo India emphasizethat the brand "cooperates with the authorities and strives to fully comply with Indian law." The parent company in China expressed its hope that the ongoing investigations will be conducted in a "truly fair and non-discriminatory business environment."
Recall, just a few months ago, Indiaseized $725 million worth of Xiaomi assets following an investigation that found the smartphone maker was making illegal money transfers to foreign entities, posing as royalty payments.
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