Highlights

  • Scrutiny against Chinese firms tightened after tensions at the border between the two countries in 2020
  • Raids were going at various premises in Uttar Pradesh, Madhya Pradesh, Bihar

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The development comes amid the government's increased scrutiny for businesses that trace their origin to the neighboring country 

The Enforcement Directorate conducted searches across more than 40 locations of Chinese mobile manufacturers including Vivo and other firms, in relation to the violation of the Prevention of Money Laundering Act (PMLA).

According to reports, the raids were going on at various premises in Uttar Pradesh, Madhya Pradesh, Bihar and a few southern states.

This is the second big case that the ED has registered against a Chinese company. Earlier it had booked Chinese mobile manufacturer Xiaomi, for allegedly making illegal foreign remittances in violation of the Foreign Exchange Management Act.

The scrutiny against Chinese firms tightened after tensions at the border between the two countries in 2020, leading to multiple rounds of talks. More than 200 mobile apps, including TikTok, have been banned since then.

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