ED: Vivo China siphoned off Rs 70,000 crore under garb of imports

According to the cardinal probe agency, Vivo Mobile India Pvt Ltd remitted Rs 70,837 crore extracurricular India since 2014. Under the “garb of payments for imports of goods”, immense amounts were siphoned disconnected to their overseas trading companies by Vivo Mobile India Pvt Ltd, arsenic per the agency. These imports were allegedly from entities based successful Hong Kong, Samoa and British Virgin Islands and galore of these overseas “trading companies” were controlled by Vivo China, alleged the ED which besides said that the proceeds of transgression successful this lawsuit were adjacent to `20,241 crore.

Vivo China tried to “conceal” its narration with Vivo India to debar getting noticed by Law enforcement agencies successful India, alleged the ED successful its chargesheet. Vivo China further made a setup which enabled it to “distance itself from Vivo India connected paper, however, it continued to power the organisation web (supply chain) nether a firm veil,” it said. All the companies were really “controlled and owned by 1 maestro – Vivo China” arsenic per the ED.

According to the cardinal probe agency, Special Purpose vehicles were acceptable up by Vivo China successful overseas countries specified arsenic Multi Accord Limited successful Hong Kong. Vivo Mobile India was incorporated connected August 1, 2014 and it was registered arsenic a subsidiary of Multi Accord Ltd. On the different hand, Vivo China was allegedly a shareholder of Lucky Crest, registered successful Hong Kong which was successful crook a shareholder of Multi Accord. This is however the ED illustrates the alleged power of Vivo China implicit Vivo India successful its chargesheet.

Vivo India and its 23 authorities distributor companies “wilfully misdeclared” its beneficial ownership to the Indian Government, the bureau claimed. On the different hand, it alleged that Vivo China had “created a web of overseas trading companies” which was designed “under a firm veil to fell their beneficial eventual owner”. These trading companies allegedly operated from Room No. 901, Yip Fung Building successful Hong Kong. In a statement, ED said, Vivo India IT manager Vikas Kumar told them that helium straight reports to a Chinese National, who works from the bureau of Vivo China.

As per the ED, Vivo China utilized an Indian institution named Labquest Engineering Pvt Ltd arsenic a “front to transportation retired retail concern activities” which were not permitted to beryllium carried retired done 100% FDI nether the automatic way arsenic per India’s FDI policy. The bureau besides alleged that Chinese Nationals utilized Indian institution Lava planetary Ltd to get invitation letters to travel to India to “avoid immoderate suspicion”.