Govt to probe Vivo over money laundering allegations

The Ministry of Corporate Affairs (MCA) will likely launch a probe by the Serious Fraud Investigation Office (SFIO) into smartphone maker Vivo, which has already been accused by the Enforcement Directorate (ED) of money laundering, people aware of the development said.
Separately, the ministry has asked its regional director to undertake a wider probe into the books of MG Motor India following adverse findings by the registrar of companies (RoC) that looked into the company’s records in a 2022 case, they added.

“In case of Vivo, it has been decided to have a thorough probe into its books, financial affairs, etc., given the seriousness of the allegations. And SFIO is best equipped to do it,” a person told ET.

The ED had in October arrested four officials, including a Chinese national, in a 2022 money laundering case. After the arrest, Vivo had said it “firmly adheres to its ethical principles and remains dedicated to legal compliance” and that it will exercise “all available legal options”.

In July 2022, the ED had raided Vivo and certain individuals linked to the company. The agency had then alleged that ₹62,476 crore was “illegally” transferred by Vivo to China to avoid paying taxes in India.

A Vivo spokesperson didn’t respond to ET queries.As for MG Motor India, another person said: “The RoC finding on it required further probe, so the case is now handed over to the regional director.”A spokesperson for MG Motor India said the company has not been informed of any such probe recently, nor has it been asked by the MCA or any of its agencies to submit further details of its books or corporate governance standards. Business Telegraph