NEW DELHI: The Enforcement Directorate (ED)carried out searches at 48 locations across the country on the premises linked to Chinese phone maker Vivo and 23 other companies associated with it, including GPICPL, whose directors have fled India.
The ED said that Vivo India remitted Rs 62,476 crores out of Rs 1,25,185 crores mainly to China, in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India.
Following the searches at premises of several companies including Vivo India, the financial probe agency seized 119 bank accounts of various entities with a gross balance to the tune of Rs 465 crore including FDs to the tune of Rs 66 crores of Vivo India, 2kg gold bars, and cash amount to the tune of approximately Rs 73 lakhs under the provisions of Prevention of Money Laundering Act (PMLA).
An ED official related to the probe said that the agency on July 5 carried out searches at 48 locations across the country belonging to VIVO Mobiles India Private Limited and its 23 associated companies such as Grand Prospect International Communication Pvt Ltd (GPICPL).
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The official said that Vivo Mobiles India Pvt Ltd was incorporated on August 1, 2014, as a subsidiary of Multi Accord Ltd, a Hong Kong-based company and was registered at ROC Delhi, while GPICPL was registered on December 3, 2014, at ROC Shimla, with registered addresses of Solan, Himachal Pradesh and Gandhinagar, Jammu.
The official further said that GPICPL was incorporated by Zhengshen Ou, Bin Lou and Zhang Jie with the help of one Nitin Garg, a chartered accountant by profession.
“Bin Lou left India on April 26, 2018, while Zhengshen Ou and Zhang Jie left India in 2021,” the official said.
The New Indian on Wednesday said it correctly that the directors of GPICPL had fled India.
The ED registered a case of money laundering on February 2 this year on the basis of a case registered at Kalkaji police station in Delhi in December last year on the complaint filed by the Ministry of Corporate Affairs against GPICPL and its Director, shareholders and certifying professionals etc.
As per the FIR, GPICPL and its shareholders had used forged identification documents and falsified addresses at the time of incorporation.
“The allegations were found to be true as the investigation revealed that the addresses mentioned by the directors of GPICPL did not belong to them, but in fact, it was a government building and house of a senior bureaucrat,” the ED official said.
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“ED’s investigation revealed that the same director of GPICPL, namely Bin Lou, was also an ex-director of Vivo. He had incorporated multiple companies across the country spread across various states, a total of 18 companies around the same time, just after the incorporation of Vivo in the year 2014-15 and further another Chinese National Zhixin Wei had incorporated further 4 companies,” the official said.
The names of the firms formed by Chinese firms included – Rui Chuang Technologies Private Limited (Ahmedabad), V Dream Technology & Communication Private Ltd (Hyderabad), Regenvo Mobile Private Limited (Lucknow), Fangs Technology Private Limited (Chennai), Weiwo Communication Private Limited (Bangalore), Bubugao Communication Private Limited (Jaipur), Haicheng Mobile (India) Private Limited (New Delhi), Joinmay Mumbai Electronics Pvt. Ltd (Mumbai), Yingjia Communication Private Limited (Kolkata), Jie Lian Mobile India Pvt. Ltd. (Indore), Vigour Mobile India Private Limited (Gurgaon), Hisoa Electronic Private Limited (Pune), Haijin Trade India Private Limited (Kochi), Rongsheng Mobile India Private Limited (Guwahati), Morefun Communication Private Limited (Patna), Aohua Mobile India Private Limited (Raipur), Pioneer Mobile Private Limited (Bhubaneswar), Unimay Electronic Private Limited (Nagpur), Junwei Electronic Private Limited (Aurangabad), Huijin Electronic India Private Limited (Ranchi), MGM Sales Private Limited (Dehradun), Joinmay Electronic Pvt Ltd (Mumbai).
The official said that these 23 companies are found to have transferred a huge amount of funds to Vivo India.
“Further, out of the total sale proceeds of Rs 1,25,185 crore, Vivo India remitted Rs 62,476 crores i.e. almost 50 per cent of the turnover out of India, mainly to China. These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India,” the official added.
The official also said that all due procedures as per law were followed during the search operations at each premise.
“The employees of Vivo India, including some Chinese nationals, did not cooperate with the search proceedings and had tried to abscond, remove and hide digital devices which were retrieved by the search teams,” the official said.