‘Closely following developments’, says China on Vivo probe

Beijing [China], July 7 (ANI): Beijing is closely following developments in an ongoing investigation related to Vivo Mobile Communications and some other Chinese firms, Chinese Foreign Ministry spokesperson Zhao Lijian has said.

“The Chinese side is closely following the developments on this matter. As I have stressed many times, the Chinese government has always asked Chinese companies to abide by laws and regulations when doing business overseas,” he said during a press briefing on Wednesday.

On Tuesday, Enforcement Directorate conducted searches at more than 40 locations including Uttar Pradesh, Madhya Pradesh and some southern states in connection with the case linked to the Chinese firms.
The case is already being investigated by the Central Bureau of Investigation (CBI).
IT department, as well as the Ministry of Corporate Affairs, are also keeping a close eye on the Chinese manufacturing firms. The ED raid is an extension of the probe against Chinese firms.
The ED conducted these searches with respect to violations of the Prevention of Money Laundering Act (PMLA).
China also expressed hope the Indian authorities will abide by laws as they carry out the investigation and enforcement activities and provide a truly fair business environment.
“We hope the Indian authorities will abide by laws as they carry out the investigation and enforcement activities and provide a truly fair, just and non-discriminatory business environment for Chinese companies investing and operating in India,” the Chinese Foreign Ministry spokesperson in a statement said.
Sources said that local units of Vivo Mobile Communications are under the radar for alleged financial improprieties as part of the investigation into other China-based firms.
Ministry of Corporate Affairs is learnt to have a special focus on potential violations including fraud.
In the case of Vivo, an inquiry was sought in April this year to detect if there were “significant irregularities in ownership and financial reporting”. (ANI)