Director of Chinese company Vivo flees India as ED strengthens money laundering investigation: Source
The sources said that Vivo India directors Zhengshen Ou and Zhang Jie have left the country as the Law Enforcement Department ramps up its investigation into the money laundering case against the Chinese company.
Vivo The sources said that Indian directors Zhengshen Ou and Zhang Jie had left the country as the Law Enforcement Bureau stepped up its investigation into the money-laundering case against the Chinese company.
The information comes a day after the agency conducted searches at 40 locations related to the case.
Federal agencies on Tuesday conducted searches at 40 locations in Uttar Pradesh, Madhya Pradesh and several southern states in connection with a case involving Vivo Mobile Communications and some other Chinese carriers.
The case is being investigated by the Central Bureau of Investigation (CBI).
The IT department as well as the Ministry of Corporate Affairs are also keeping a close eye on Chinese manufacturing companies. The ED raid is an extension of the investigation against the Chinese companies.
The ED conducted these searches regarding the Prevention of Money Laundry Act (PMLA).
Sources say that the local units of Vivo Mobile Communications are being targeted for alleged lack of funds as part of an investigation into other companies based in China.
The Corporate Affairs Department is known to specifically focus on potential violations including fraud.
In the case of Vivo, an investigation was sought in April of this year to find out whether there were “significant irregularities in ownership and financial reporting”.
Further investigations are underway.
