Vivo is now under the scrutiny by The Indian government, The company is under investigation for money laundering accusations. The company has also been raided at several locations connected to it have been searched through officials from Enforcement Directorate (ED).

According to an Live Mint report, ED has conducted raids on offices and companies which are associated with that Chinese phone maker in India. It is interesting to note that this news comes the news that the other Chinese company, Xiaomi, was also targeted by similar raids in India. At the moment it appears that it appears that the ED has not released any details about the raids, however they were reported to have been conducted pursuant to the Prevention of Money Laundering Act (PMLA) in Vivo India’s headquarters.

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An additional report by Economic Times reported that one brand’s distributors located in Jammu and Kashmir is also under the watch from The ED as the authorities discovered that at least two shareholders had filed fake documents with fake Indian addresses. Vivo India has yet to respond to any comments about the ED raids, as of at the moment. Vivo India is among the top five brands of smartphones in India and has maintained a solid position in offline markets.

In the same way, the ED has conducted raids on Xiaomi and other Xiaomi-related locations in connection with a tax evasion that was brought by The Income Tax Department. The government was able to seize five hundred and fifty-five crore in INR (roughly 701 million US dollars) in total assets. The investigation started in February. The ED stated it was the case that Xiaomi India remitted foreign currency equivalent to 5551 crores INR to three foreign-based organizations in the “guise of royalty.”