New Delhi. Chinese mobile company Vivo is engaged in efforts to destabilize the country’s financial system. The ED has mentioned this in an affidavit given to the Delhi High Court in this matter. The Income Tax Department and ED have been cracking down on Chinese mobile companies for a long time. The ED has also taken action several times against Chinese companies like Vivo and Xiaomi. All these companies have always been accused of tax evasion. Now ED is making big disclosures about Vivo. According to the ED, scrutiny of Vivo’s bank accounts clearly shows that the company is involved in money laundering. The ED said that this is just an attempt to destabilize the financial system of the country. The ED, in the affidavit presented before the court, said that investigation of a total of 22 companies related to the Indian unit of the Chinese company is going on. These companies are being investigated for sending money to China. The agency alleges that these 22 companies are owned by foreign nationals or foreign entities based in Hong Kong. According to the affidavit, “It is observed that the companies have remitted most of the money to China. This is a suspicious incident and the investigation is on.” Vivo had earlier also said that it follows all local laws.
The ED has also made several serious allegations against Vivo’s Jammu and Kashmir distributor Grand Prospect International Communication Pvt Ltd, saying that this company had allegedly misrepresented itself as a subsidiary of Vivo India. Significantly, this company is already under investigation due to allegations of money laundering. The ED alleged that the company was being run on the basis of forged documents. The agency says a CA assisting in the incorporation of GPICPL, which is based in New Delhi, did a similar thing for Vivo in August 2014. In addition, the email was in the filing of the Ministry of Corporate Affairs through the use of GPICPL. In this a connection was visible between Vivo and GPICPL. This has also been mentioned in the ED affidavit. According to the ED, “These observations point to the deep ties between Vivo and GPICPL, a company created on the basis of forged documents.”
The agency told the court that two directors of GPICPL, Zhengshen Ou and Zhang Jie, left India exactly 10 days after the Delhi Police registered an FIR against the company. According to the agency, the company is trying to destabilize the country’s financial system. To corroborate this allegation, the agency had also shown money laundering as financial terrorism in its 2020 judgment, citing a decision of the Orissa High Court.