Chinese smartphone maker Vivo faces a money-laundering probe in India as financial crime agents raided its Mumbai office on Tuesday.
The Vivo raids follow an Enforcement Directorate investigation into Xiaomi, another Chinese smartphone maker and one of India’s leading brands, for allegedly sending remittances abroad illegally.
“Vivo is cooperating with the authorities to provide them with all required information,” said the company, which is owned by China’s BBK Electronics. “As a responsible corporate, we are committed to be fully compliant with laws.”
The Enforcement Directorate did not respond to requests for comment. Both Chinese smartphone makers have denied any wrongdoing.
Xiaomi alleged in court that its top executives faced threats of “physical violence” and coercion during questioning by officials at the Directorate. The agency denied the allegations.
Many Chinese companies have struggled to do business in India due to political tensions following a border clash in mid-2020.
India has cited security concerns in banning more than 300 Chinese apps, and also tightened rules for Chinese companies investing in India.
- Reuters, with additional editing by George Russell