As Indian investigative agencies crack down on Chinese smartphone makers: Vivo, OPPO And XiaomiChinese state-run media have said companies should not stop using legal weapons to protect their legitimate rights.
According to an opinion in the Global Times, if the Indian legal system really fails them, it will be a great loss for both the parties.
“For Chinese companies like Vivo that have contributed to the Indian economy for a long time and operate legally in the local market, legal weapons have become the last line of defense for these companies to continue their business in India, “Read it.
On Wednesday, the Delhi High Court allowed Vivo to operate its bank accounts on the condition of furnishing a bank guarantee of Rs 950 crore and keeping Rs 250 crore in its accounts.
The court also directed the Chinese firm to submit details about its bank activities and remittances to the Enforcement Directorate (ED) and posted the matter for further hearing on July 28.
Last week, the ED had raided 44 locations in 22 states of Chinese companies, including smartphone maker Vivo.
The investigating agency found that Vivo sent 50 per cent (Rs 62,476 crore) of its total sales to China.
The Global Times report said that taking up legal arms for Vivo to protect its rights and interests is a compelling move to resume normal operations.
“While filing a suit must bear a certain cost of time and money, it is the most reasonable option for the company,” it said, for Indian financial investigation authorities and courts, as the Vivo case attracted widespread attention. “It is imperative for them to take efficient, fair and transparent action”.
“If the Indian court does not deal with the matter objectively or does not disclose the information in a timely manner, it will certainly undermine the authority of the Indian legal system and further damage India’s business environment,” the paper said. ”
An alleged customs evasion of around Rs 4,389 crore has been detected by the Directorate of Revenue Intelligence (DRI). Oppo IndiaThe smartphone maker on Wednesday said it will take appropriate steps against the DRI show-cause notice, including “remedies provided under the law”.
The DRI in its statement said that it has found that Oppo Mobiles India Pvt Ltd has evaded customs duty of around Rs 4,389 crore.
In April, the ED had said that they seized Rs 5,551.27 crore of Xiaomi Technology India Pvt Ltd lying in bank accounts under the provisions of the Foreign Exchange Management Act in connection with illegal outward remittances made by the company.
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