Over 40 offices of Vivo across India were raided by the authorities on Tuesday, July 5. The Enforcement Directorate (ED) of the country launched a probe against the Chinese smartphone maker over the alleged incidents of money laundering in select establishments.
India Raids Vivo Offices Anew
Last time, the authorities from India came after Xiao, another known smartphone manufacturer from China which was believed to be operating illegal payments overseas.
Following this incident, ED probed another case with another mobile device company. This time, the investigators raided Vivo in line with the potential money laundering incidents in the offices, per Livemint.
Speaking of the case, a Vivo spokesperson said that the company was doing its best to cooperate with the ED.
"Vivo India is cooperating with the authorities to provide them with all required information. As a responsible corporate, we are committed to being fully compliant with laws in India," the spokesperson told TechCrunch in an interview.
Back in April, the ED had been on the lookout to look for a piece of evidence that would show Vivo's involvement in irregular financial reporting and ownership, which took many months.
India Seizes $725 Million From Xiaomi
As the case unfolded in the same month, India's anti-money laundering agency seized another Chinese handheld firm. This time, ED seized Xiaomi's bank accounts in the country. According to the authorities, the phone maker remitted over $700 million of assets, which masqueraded as "royalty payments."
In an early report from Reuters, Xiaomi denied this allegation, citing that the authorities had been threatening the executives during the probe.
Additionally, ED noted that the company had been giving away deceptive information to financial institutions. This took place during the time when it was remitting the money in different countries.
As of press time, the decision remains pending in the court after ED challenged the decision in Karnataka High Court.
Related Article : India Vs. Xiaomi Patent Fee Issue Update: Apple, Other Tech Firms Say Officials Lack Royalty Payment Understanding
Growing Tension Between India and China
Outside the tech industry, the tension between China and India has been growing worse since then. The two nations had been reportedly fighting on the border back in 2020.
Going back to the digital world, India remains firm in its decision to gradually eliminate Chinese apps in the country. Popular video-sharing app TikTok faced raps in the past because of its security concerns.
Even the first FPS game, "PUBG Mobile," was banned in the country during the year when COVID-19 lockdowns started.
The feud between the two countries might have intensified the restrictions imposed on the Chinese smartphone companies.
Although the tension remains stiff at the moment, it's no wonder the Indian market is still heavily dominated by China in the mobile tech sector.
This article is owned by Tech Times
Written by Joseph Henry
