According to reports, the Chinese directors of the smartphone manufacturer Vivo have left India as the Enforcement Directorate (ED) intensified its probe into the company on charges of money laundering. The ED conducted searches at 44 Vivo locations nationwide two days earlier. The Prevention of Money Laundering Act’s provisions were used to guide the searches (PMLA). Zhengshen Ou and Zhang Jie, two Chinese nationals employed as directors by Vivo India, have reportedly left the country, according to ANI, which cited unnamed sources. The Central Bureau of Investigation (CBI), along with the ED, is looking into allegations of money laundering against the Chinese smartphone manufacturer.

After learning of a Delhi Police FIR against a Vivo distributor alleging that a few Chinese stakeholders had faked their identification documents, the ED opened a money laundering case. The federal agency is operating under the theory that the alleged forgery was carried out to evade Indian tax laws by utilising shell firms to launder money, send it abroad, or invest in other businesses. In order to determine whether there were any anomalies in ownership and financial reporting at Vivo India, the Ministry of Corporate Affairs requested an investigation in April of this year. Vivo is not the only Chinese business that Indian authorities have recently been keeping an eye on. On suspicion of tax evasion and money laundering, Alibaba, Huawei, Oppo, Xiaomi, Huawei, Oppo, and OnePlus are all under investigation.

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