Domestic mobile phone manufacturers are being targeted for the Indian government freezing vivo funds of approximately 400 million!

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According to multiple foreign media reports, Indian law enforcement authorities arrested four industry executives on October 10th local time, including an employee of Vivo, a Chinese smartphone manufacturer, on charges of money laundering.

The core of this incident lies in the affiliated company of vivo India, GPICPL, which was registered and established in ROCShimla, India on December 3, 2014. It was founded by three Chinese citizens, ZhengshenOu, BinLou, and ZhangJie.

The Indian law enforcement agency has accused the three individuals of using forged identity documents and forged addresses when establishing GPICPL, and GPICPL's director, Bin Lou, is also a former director of vivo.

Meanwhile, after the establishment of vivo India Company from 2014 to 2015, BinLou registered 18 companies related to vivo India Company in various parts of India, and ZhixinWei registered 4 companies related to vivo India Company.

The Indian Law Enforcement Bureau believes that the above affiliated companies have transferred a large amount of funds to Vivo India, which has remitted nearly half of its local sales in India of 1251.85 billion rupees (about 105.78 billion yuan) and about 624.76 billion rupees (about 52.79 billion yuan) overseas, mainly to Chinese Mainland.

The Indian Law Enforcement Agency stated that "these remittances were made to create huge losses for vivo India's registered company, in order to avoid paying taxes in India." Therefore, 119 bank accounts of vivo and its affiliated companies in India were frozen, with a total value of approximately 4.65 billion rupees (approximately 390 million RMB) in cash and other assets, including vivo India's 660 million rupees bank fixed deposit, 2 kilograms of gold bars, and approximately 73 million rupees in cash.

On the 11th, vivo responded to this news to Chinese media, stating: "vivo strictly complies with local laws and regulations in India. We are closely monitoring the recent investigation and will take all feasible legal measures to respond

This is not the first time a domestic mobile phone manufacturer has been punished in India. On January 5, 2022, the Indian Ministry of Finance claimed that Xiaomi had evaded taxes in India and recovered RMB 550 million from Xiaomi Company. On May 1, India also accused Xiaomi India Company of violating the Foreign Exchange Management Law by privately remitting funds to countries outside of India, impounding Xiaomi India Company's assets worth RMB 4.8 billion.

In February 2022, India also froze the bank accounts of Huawei's Indian subsidiary on suspicion of reducing taxes in India by transferring a large amount of funds back to its parent company in the form of dividends.

However, although domestic mobile phone manufacturers have been repeatedly targeted in India, considering that India is currently the world's second largest mobile phone market, second only to China, and also the fastest-growing smartphone market in the world, domestic mobile phone manufacturers are still flocking to the Indian market, including the glory of having previously withdrawn from the Indian market. Recently, they have invested 4 billion rupees to build a local production line in India in order to return to the Indian market.