The Enforcement Directorate of India searched all 40 locations of Vivo India and gave information about the investigation.
A press release from the company says that it sent INR 62,476 crore, which is about $8 billion, to China.
During the investigation, the ED seized 119 bank accounts with a total of INR 465 crore (about $58 million), 2 kg of gold bars, INR 66 crore ($8.3 million), and 73 lakh (just under $100,000) in cash.
The Enforcement Directorate said that more than half of all the sales that Vivo India made went to China.
This was done so that the money wouldn’t have to be taxed and so that “large losses in Indian-incorporated corporations” could be revealed.
The directors of Vivo India, Zhengshen Ou and Zhang Jie, left the country after the Directorate said that “certain Chinese nationals” had deleted and covered up digital evidence of money laundering without giving names.
Money transfers were made through a fake Hong Kong-based shell company. Vivo India was set up as a subsidiary, and, at least on paper, each of the country’s main regions had its own smaller company.
Then, they sent all of their profits to Vivo India, a subsidiary, which sent the money right back to its parent company.
Vivo India executives say that the company has been working with the authorities and is committed to following Indian law to the letter.
The parent company in China hopes that the current probes will be done in a “really fair and non-discriminatory business environment.”
