India’s financial crime agency raids Chinese company Vivo

A Vivo logo is seen at a shopping mall in Shanghai, China February 22, 2019. Picture taken February 22, 2019. REUTERS/Aly Song

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MUMBAI, July 5 (Reuters) – India’s Financial Crimes Agency raided the offices of Chinese-owned BBK Electronics-owned smartphone maker Vivo and its related entities on Tuesday, a senior government official told Reuters. and an industry executive.

The searches carried out by the Directorate of Enforcement are part of an investigation into suspected money laundering, local media reported. Management and Vivo did not immediately respond to requests for comment.

The sources declined to be named because the investigation is not public.

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The Vivo raids come months after the Law Enforcement Branch launched an investigation into Xiaomi Corp (1810.HK), one of India’s leading smartphone vendors, for alleged illegal remittances to abroad “under cover of royalty payments”. Read more

Xiaomi denied any wrongdoing and alleged in court that its top executives had been subjected to threats of “physical violence” and coercion during interrogation by Branch officials. The agency denied the allegations. Read more

Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India has cited security concerns since banning more than 300 Chinese apps and also tightened standards for Chinese companies investing in India.

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Reporting by Aditya Kalra and Abhirup Roy; Editing by Sanjeev Miglani, Louise Heavens and Jan Harvey

Our standards: The Thomson Reuters Trust Principles.

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