World News | Companies operating in India need to comply with land laws: MEA in the case of Vivo

New Delhi [India]July 7 (ANI): The Ministry of Foreign Affairs (MEA) on Thursday stressed that companies doing business in India should comply with land laws regarding ongoing investigations related to Vivo Mobile and some other Chinese companies.

At a weekly media briefing by the Ministry of Foreign Affairs (MEA) on Thursday, official spokesman Arindam Bagchi said: “Companies operating here need to comply with land laws. Our legal authorities are Law to take action. I don’t think it’s a comment.”

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Nearly 23 associated companies of Vivo India such as Grand Prospect International Communication Pvt Ltd (GPICPL) transferred huge sums to the company, out of the total sales proceeds of Rs 1,25,185 crore, it remitted Rs 62,476 crore, accounting for Nearly 50% of the turnover is India, mainly China, the Enforcement Directorate said on Thursday.

On Tuesday, the enforcement agency conducted searches in more than 40 locations, including in Uttar Pradesh, Madhya Pradesh and some southern states, in connection with a money-laundering case registered against Chinese smartphone maker Vivo.

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The Central Bureau of Investigation (CBI) is already investigating the case.

The IT department, as well as the corporate affairs department, are also paying close attention to Chinese manufacturing companies. The ED raid is an extension of the investigation into the Chinese company.

Responding to the Vivo director fleeing India, Bagchi said: “We have not received information from the authorities. It is a legal issue and when we receive something and we need to talk to China, we have a system to communicate with each other to assist. “

The ED conducted these searches for violations of the Prevention of Money Laundering Act (PMLA).

Au Zhengshen and Zhang Jie, Chinese directors of GPICPL, a company that works with mobile maker Vivo, fled India last year, officials at the Bureau of Enforcement told Thursday.

The official corrected reports that Ou Zhengshen and Zhang Jie were directors of vivo and fled when the ED stepped up its investigation into the money-laundering case against the Chinese company.

“Zhengshen Ou and Zhang Jie were directors of GPICPL, a company linked to phone maker Vivo, and they fled last year,” the ED official told ANI, speaking on condition of anonymity.

The local unit of Vivo Mobile Communications has come under the spotlight for alleged financial misconduct as part of an investigation into other Chinese companies.

The Department of Corporate Affairs is understood to be particularly concerned about potential breaches, including fraud.

In the case of Vivo, an investigation was requested in April to find out whether there were “material irregularities in ownership and financial reporting.”

This is the second major case registered by the Education Department against a Chinese mobile phone company. Earlier, it had charged another Chinese phone maker, Xiaomi, with illegally sending money in violation of the Foreign Exchange Management Act (FEMA). (ANI)

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