Vivo India Directors Zhengshen Ou, Zhang Leave India Amid Intensifying Money Laundering Probe By ED: Report

Two top executives of Chinese handset maker Vivo have fled India amid intensifying inquiry into a money laundering case by the Enforcement Directorate.

The IT department along with the Ministry of Corporate Affairs is keeping a close eye on Chinese manufacturing companies. Image: Getty

Two top executives of Chinese handset maker Vivo have fled India amid intensifying inquiry into a money laundering case by the Enforcement Directorate (ED). The two Vivo India directors who have fled the country are Zhengshen Ou and Zhang Jie. This development comes a day after the ED conducted searches at 40 locations of Vivo and associated firms in connection with the case, reported news agency ANI.

The IT department along with the Ministry of Corporate Affairs is keeping a close eye on Chinese manufacturing companies. The ED conducted searches with respect to violations of the Prevention of Money Laundering Act (PMLA).

Vivo India did not respond to a request for comment on Thursday from ABP Live.

Earlier on Tuesday,q the ED conducted searches at 44 locations across the country in a money-laundering investigation against Vivo and related companies, citing officials, the PTI had reported. According to sources, parts from Vivo, and the premises of a few other Chinese companies were being raided by the ED officials.

The Central Bureau of Investigation (CBI) has also been probing the case and have lodged a separate FIR.    

In another case, on April 30 ED had seized Rs 5,551.27 crore from Xiaomi India in connection with illegal outward remittances made by the company. The seizure was made from the company's bank accounts under provisions of the Foreign Exchange Management Act.

In February this year, Chinese telecom major Huawei has been accused of tax evasion by the income tax (I-T) department by manipulating its account books in India.