NEW DELHI — Indian investigators have raided an Indian subsidiary of Chinese smartphone maker Oppo, accusing it of evading customs duties totaling 43.9 billion rupees ($551 million), the government said on Wednesday.
The Directorate of Law Enforcement, India’s financial crime investigation agency, said it had sent a notice to the company asking for the money to be recovered.
Oppo India, a subsidiary of Chinese company Guangdong Oppo Mobile Telecommunications Corp. Ltd, is the second Chinese mobile company to be sought by management this month.
The actions underscore the scrutiny of Chinese companies following a standoff on the Himalayan border between the armies of the two nuclear-armed neighbors that began in 2020. Twenty Indians and four Chinese soldiers were killed in the dead end.
Citing security concerns, India also banned more than 300 Chinese mobile apps and tightened rules on Chinese investment in India.
Oppo India is engaged in the manufacture, assembly, wholesale and distribution of mobile handsets and accessories in India.
In a statement, management accused Oppo India of using ineligible fee waivers totaling 2.9 billion rupees ($377 million) and wrongly accounting for royalties and license fees. He said a large amount of money had been remitted to China to avoid paying taxes in India.
A spokesperson for Oppo India could not immediately be reached for comment. Chinese Foreign Ministry spokesperson Zhao Lijian said in Beijing earlier this month that the Chinese government requires Chinese companies doing business overseas to abide by local laws and regulations and supports efforts. businesses to protect their rights and interests.
“We hope India will investigate and enforce according to law, and provide a fair, just and non-discriminatory business environment for Chinese companies’ investments and operations in India,” Zhao said.
Indian investigators said last Thursday they raided dozens of offices of Chinese company Vivo Mobile India Private Limited as part of an investigation into allegations of money laundering by the smartphone maker.
India’s Law Enforcement Directorate said it seized 119 bank accounts with 4.65 billion rupees ($58.76 million), 2 kilograms (4.4 pounds) of gold bullion and 7.3 million rupees ($92,405) in cash in raids on Chinese-owned BBK Electronics.