ED is investigating Vivo for visa violations and money laundering
Enforcement Directorate (ED) has accused some Chinese employees of smartphone maker Vivo of hiding their employment status while applying for visas and violating rules by visiting "sensitive" areas like Jammu and Kashmir. The ED made these allegations in a court filing following the arrest of a Vivo executive, Guangwen Kuang, in connection with a money laundering case reportedly involving the company.
Visits to sensitive areas and working without appropriate visas
The court filing disclosed that at least 30 Chinese nationals traveled throughout India, including to sensitive regions like Jammu and Kashmir and Ladakh, blatantly disregarding Indian visa conditions. The ED claims that many Vivo group employees worked in India without the proper visas. These individuals allegedly hid information about their employer in their visa applications, effectively deceiving the Indian embassy or missions in China.
Vivo's response to the allegations
When Moneycontrol asked for a comment, Vivo, reiterated a statement released earlier this week expressing "deep concern" over the executive's arrest. They emphasized that they are "dedicated to legal compliance." The company has not yet addressed the specific allegations concerning visa violations and visits to sensitive areas. China's foreign ministry is closely monitoring the situation but has not commented on the matter.
Money laundering case against Vivo
Earlier in 2022, the ED conducted raids at 48 locations connected to Vivo and its associates as part of a money laundering investigation. The agency accused the Chinese firm of unlawfully funneling money to China to dodge taxes. The ED alleges that Vivo illegally transferred approximately $13 billion (Rs. 62,476 crore) to China to evade tax payments in India. The money laundering case was registered in February 2022, with raids taking place in July 2022.
Impact on India-China business relations
These accusations against Vivo surface amid escalating tensions between India and China over business dealings. Following border clashes in 2020 that resulted in casualties on both sides, New Delhi has tightened restrictions on incoming investments and banned hundreds of Chinese apps. The case against Vivo could further strain the already tense business relationship between the two nations.
