The Enforcement Directorate (ED) has reportedly arrested four Vivo executives, one of whom is Chinese, in connection with a money laundering investigation.
This development occurred after the country’s financial crime agency raided the company’s offices and accused it of money laundering.
The situation comes during a period of escalating tensions between China and India over various issues, including border disputes and India’s increased scrutiny of Chinese businesses and investments.
Vivo had previously denied allegations of money laundering and stated its commitment to full compliance with the law.
Last year, the ED temporarily blocked 119 bank accounts related to Vivo’s India business, alleging illegal transfers of $7.5 billion to China to avoid taxes by declaring significant losses in India.
Additionally, the ED had issued show-cause notices to two senior Xiaomi India executives earlier this year over alleged foreign exchange law violations.
This included the seizure of funds amounting to Rs 5,551.27 crore from Xiaomi India’s bank accounts, citing unauthorized remittance of this amount abroad under the guise of royalty payments.
