After Vivo another Chinese mobile company is under scanner for alleged money laundering and tax evasion. The Directorate of Revenue Intelligence (DRI) searched mobile company Oppo India and unearthed customs duty evasion of nearly ₹4389 core by the company. During the course of investigation, searches were conducted by DRI at the office premises of Oppo India and residences of its key management employees, which led to the recovery of incriminating evidence indicating wilful mis-declaration in the description of certain items imported by Oppo India for use in the manufacture of mobile phones.
"This mis-declaration resulted in wrongful availment of ineligible duty exemption benefits by Oppo India amounting to ₹2,981 crore. Among others, senior management employees and domestic suppliers of Oppo India were questioned, who in their voluntary statements accepted the submission of wrongful description before the Customs Authorities at the time of import," according to a PIB release.
The release further stated that investigation also revealed that Oppo India had remitted / made provisions for payment of ‘Royalty’ and ‘Licence Fee’ to various multinational companies, including those based in China, in lieu of use of proprietary technology/brand/IPR license etc. The said ‘Royalty’ and ‘Licence Fees’ paid by Oppo India were not being added in the transaction value of the goods imported by them, in violation of Section 14 of the Customs Act, 1962, read with Rule 10 of the Customs Valuation (Determination of Value of Imported Goods) Rules 2007. The alleged duty evasion by M/s Oppo India on this account is ₹1,408 crore.
Oppo India is engaged in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories thereof, across India. Oppo India deals in various brands of mobile phones, including Oppo, OnePlus and Realme.
Earlier Enforcement Directorate had frozen Vivo India's accounts over alleged money laundering, today the court lifted a freeze and ordered the Chinese company to provide a bank guarantee of $119 million, a lawyer for the company told Reuters. According to the ED, Vivo India's nearly 23 associated firms such as Grand Prospect International Communication Pvt Ltd (GPICPL) had transferred huge amounts to the firm and out of the total sale proceeds of ₹1,25,185 crores, it remitted ₹62,476 crores almost 50 per cent of the turnover out of India, mainly to China.
Oppo India evaded customs duty worth ₹4,389 crore: DRI | Mint - Mint
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