India’s financial crime agency has accused Chinese smartphone maker Vivo and its Indian affiliates of multiple visa violations and of siphoning off a significant sum of money. The accusations emerged as tensions continue to rise between India and China over business activities following border clashes in 2020.
At least 30 Chinese individuals entered India on business visas and worked for Vivo, but they failed to disclose their employment with the company in their visa applications. The agency, the Enforcement Directorate, also claimed that these employees traveled across India, including sensitive areas in Jammu and Kashmir and Ladakh, violating Indian visa conditions.
The allegations were detailed in a 32-page court filing that was not made public. These accusations followed the recent arrest of a Vivo executive, Guangwen Kuang, as part of a money laundering investigation initiated in 2022.
Vivo, which holds a 17% market share, expressed deep concern over the executive’s arrest and reiterated its commitment to legal compliance. China’s foreign ministry did not respond to a Reuters request for comment, and neither did the Indian embassy in Beijing or the foreign ministry in New Delhi.
In addition to the visa violations, the Enforcement Directorate accused Vivo of siphoning off $13 billion out of India through trading companies controlled by its Chinese parent. The agency claimed that Vivo concealed profits in its statutory filings and evaded income taxes. Last year, the agency estimated that around $7.5 billion had been remitted to China.
The ongoing border dispute between India and China adds a geopolitical dimension to these allegations. Both countries lay claim to large tracts of land controlled by the other in the western Himalayas. India prohibits foreigners from entering specific areas in Ladakh and parts of Jammu and Kashmir without a permit from the authorities, in addition to a visa.
These allegations reflect the broader challenges in India-China relations, particularly in the context of the technology and business sectors.