The Directorate of Revenue Intelligence (DRI) has found that M/s Vivo Mobile India Private Limited (hereinafter referred to as “M/s Vivo India”) is engaged in customs duty evasion amounting to approximately Rs 2,217 crore.
As a division of M/s Vivo Communication Technology Co. Ltd. in Guangdong, China, M/s Vivo India manufactures, assembles, wholesale trades, and distributes mobile handsets and their related accessories.
During the course of the investigation, DRI officers searched M/s Vivo India’s factory premises. As a result of these searches, incriminating evidence was found that suggested certain commodities imported by M/s Vivo India for use in the production of mobile phones were intentionally misrepresented in their descriptions.
M/s Vivo India wrongfully declared duty exemption benefits of Rs 2,217 crore that wasn’t appropriate as a result of this reporting error. As a result of the investigation’s conclusion, M/s Vivo India has been given a Show Cause Notice under the provisions of the 1962 Customs Act, asking for payment of customs taxes of Rs. 2,217 crores.
M/s Vivo India has voluntarily put up a sum of Rs 60 crore to cover its differential duty burden.
Show Cause Notices demanding duty of Rs. 4,403.88 crores have recently been issued to M/s Oppo Mobiles India Private Limited as part of another series of investigations by DRI.
Last month, ED conducted searches at 44 Vivo locations nationwide for two days under the provisions of the Prevention of Money Laundering Act. Zhengshen Ou and Zhang Jie, two Chinese nationals employed as directors by Vivo India fled the country. The Central Bureau of Investigation (CBI), along with the ED, is looking into allegations of money laundering against the Chinese smartphone manufacturer.
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