Vivo India has $58 million seized after a significant money laundering probe

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40 Vivo India sites were searched by the Enforcement Directorate of India, which also provided information regarding the investigation. An official press statement states that the corporation sent INR 62,476 crore, or about $8 billion, to China.

image credits: businesstoday

119 bank accounts totaling INR 465 crore (approximately $58 million) were confiscated by the ED during the inquiry, along with 2 kg of gold bars, an additional INR 66 crore ($8.3 million), and 73 lakh (just under $100,000) in cash.

According to the Enforcement Directorate’s statement, over half of all sales made by Vivo India were diverted to China. To avoid paying taxes on this money and “disclose large losses in Indian registered corporations,” this was done.

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Zhengshen Ou and Zhang Jie, the directors of Vivo India, left the country when the Directorate disclosed that “certain Chinese Nationals,” without providing names, had deleted and covered up digital proof of money laundering.

Money transfers were made through a fictitious Hong Kong-based firm called vivo India, which was incorporated as a subsidiary and had smaller entities operating independently, at least on paper, in each of the country’s principal regions. Then, they forwarded all proceeds to vivo India, a subsidiary that promptly transferred the money to its parent firm.

The company “has been collaborating with authorities and is dedicated to complete compliance with the Indian law,” according to executives of Vivo India. A really fair and non-discriminatory business environment would be used to conduct the current investigations, the parent firm in China expressed hope.

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