What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
The probe, which has resulted in the arrest of several Vivo executives and others, and the filing of a charge sheet against them, has revealed the extent and the impact of the financial wrongdoing by the Chinese company and its Indian collaborators.
The ongoing probe by the Enforcement Directorate (ED) into the alleged money laundering and tax evasion by Chinese smartphone maker Vivo and its associates has exposed the dark and dubious side of foreign direct investment (FDI) in India. The probe, which has resulted in the arrest of several Vivo executives and others, and the filing of a charge sheet against them, has revealed the extent and the impact of the financial wrongdoing by the Chinese company and its Indian collaborators. The probe has also raised serious questions about the security and the sovereignty of the country, and the need for stricter and transparent regulation of the FDI inflows and outflows.
According to the ED, Vivo and its associates have violated the FDI norms and the visa conditions, and have concealed their beneficial ownership and control over various Indian companies. They have also used deceptive and fraudulent practices to generate and transfer huge amounts of money, amounting to over INR 20,000 crore ($2.6 billion), from India to China, evading taxes and laundering the proceeds of crime. The ED has also alleged that some of the Chinese nationals involved in the scam have left the country, raising doubts about their role and their motive.
The Vivo probe has exposed the loopholes and risks in the current FDI policy and the regulatory framework in India, which allow such financial malpractices and manipulations to take place. The probe has also highlighted the lack of coordination and cooperation among the various agencies and authorities that are responsible for monitoring and enforcing the FDI rules and the anti-money laundering laws. There is a need for a more vigilant and proactive approach to prevent and counter such financial crimes, which not only cause huge losses to the exchequer and the economy but also pose a threat to national security and sovereignty.
The Vivo probe also has implications for the bilateral economic relations between India and China, which have been strained and turbulent in recent years, due to the border disputes, the trade imbalance, and the strategic rivalry. The Vivo case has shown the extent and influence of Chinese investments and businesses in India, which have been growing rapidly and diversely in various sectors, such as telecom, e-commerce, infrastructure, and energy. There are potential challenges for the Indian market and the consumers for the Chinese companies, which have been facing competition and resistance from the domestic and global players. The probe has also shown the need and the possibility of a more balanced and mutually beneficial economic engagement between the two countries, based on the principles of transparency, accountability, and reciprocity.
The Vivo probe is a wake-up call for the Indian government and society, which needs to take a serious and holistic view of the FDI and its impact on the country. The government needs to review and reform the FDI policy and the regulatory framework to ensure that the FDI inflows and outflows are in line with the national interest and the public welfare. The enforcement and prosecution of financial crimes need to be strengthened. It should be ensured that the perpetrators are brought to justice and the proceeds of the crime are recovered. The government also needs to engage and cooperate with the international community and the multilateral agencies, to combat the menace of money laundering and tax evasion, which are global and cross-border issues.
