India is currently investigating local units of ZTE Corporation and Vivo Mobile Communications Company for possible financial irregularities, extending that probe to China-based companies after penalizing Xiaomi Corporations, according to documents reviewed by Bloomberg.
India has tightened its inspection of Chinese companies since 2020, when the two countries engaged in a dispute. Over 200 Chinese mobile apps have been banned by Prime Minister Narendra Modi’s government, including Tik Tok, Alibaba, Xiaomi’s phone apps and many more.
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India’s Ministry of Corporate Affairs, according to the documents, will review the auditors’ reports as it has received information from some unknown sources which may be infringing, including fraud. According to the documents, an investigation was requested in April for Vivo to determine if there were “major irregularities in financial reporting and ownership” while officials were asked to review ZTE’s records and provide details. conclusions as soon as possible.
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According to a source familiar with the matter, the ministry has started reviewing the books of more than 500 Chinese companies, including Huawei Technologies, Oppo, Alibab.com India Cloud (India) LLP and ZTE. No comments were made by the company representative.
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According to the source, the ministry has sent letters to companies requesting information on stakeholders, end beneficiaries, administrators and is currently in the process of obtaining them and the report of these is expected in July. The person further added that once the report is released, it will then be determined whether major fraud by the serious fraud office is necessary or not.
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(with agency contributions)
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