Vivo India remitted Rs 62,476 crore to China to avoid taxes, says ED
India Today
The ED said Vivo India remitted almost 50 per cent of its turnover, which is Rs 62,476 crore, mainly to China in order to avoid paying taxes.
The Enforcement Directorate has seized 119 bank accounts of various entities with Rs 465 crore including fixed deposits to the tune of 66 crores of Vivo India after conducting searches at 48 locations across the country. According to ED, Vivo India remitted Rs 62,476 crores (almost 50% of the turnover out of India) to China.
These remittances were allegedly made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India.
The financial probe agency had conducted searches at locations linked to VIVO Mobiles India Private Limited and its 23 associated companies such as Grand Prospect International Communication Pvt Ltd (GPICPL).
The ED has also seized two kilograms gold bars and Rs 73 lakh in cash under the prevention of money laundering act (PMLA).
Vivo Mobiles India Pvt Ltd was incorporated on August 1, 2014 as a subsidiary of Multi Accord Ltd, a Hong Kong-based company and was registered in Delhi. GPICPL was registered on December 3, 2014 at Shimla, with registered addresses of Solan, Himachal Pradesh and Gandhinagar, Jammu.
GPICPL was incorporated by Chinese nationals - Zhengshen Ou, Bin Lou and Zhang Jie with the help of a chartered accountant, Nitin Garg. Interestingly, Bin Lou left India on April 26, 2018, whereas Zhengshen Ou and Zhang Jie left India in 2021.
The ED filed a case in February 2022 on the basis of an FIR registered by Delhi Police in December 2021 against GPICPL, its directors, shareholders and certifying professionals on the basis of complaint filed by the Ministry of Corporate Affairs.