Last Updated:
The report states that Vivo, Oppo, and Xiaomi sent around Rs 6,000 crore to improper destinations, with alleged tax evasion and financial irregularities, prompting investigation
This investigation comes amidst stringent monitoring of Chinese companies in India for financial irregularities. (Representative/Shutterstock)
Chinese smartphone makers Vivo, Oppo, and Xiaomi are under the scanner in India over alleged financial fraud worth Rs 6,000 crore. The Ministry of Corporate Affairs has tasked the Serious Fraud Investigation Office (SFIO) to probe the companies following a report from the Registrar of Companies (ROC), which points to possible financial misappropriation. Two government sources confirmed the development to Moneycontrol.
The SFIO initiated the investigation in March 2025, with expectations that it may take about a year to complete. A source informed Moneycontrol that the investigations into Vivo, Xiaomi, and Oppo are ongoing. According to the ROC report, these companies allegedly sent about Rs 6,000 crore to inappropriate destinations.
The report also highlights accusations of tax evasion and irregularities in financial transactions among related companies. Consequently, the ministry directed the SFIO to conduct a thorough investigation. Once completed, the SFIO will submit its findings to the ministry, which could lead to legal action against these companies, their directors, and associates in a special court.
Moneycontrol reached out to Vivo, Oppo, and Xiaomi for comments via email, but has not received any responses so far. Updates will be added once replies are received.
The ROC report, prepared after several months of scrutiny, not only accuses the companies of misdirecting funds but also highlights tax evasion and irregularities in financial dealings. The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) have been informed to investigate tax-related issues.
The Registrar of Companies (ROC) forwarded its recommendations to the ministry, prompting the case to be handed over to the SFIO due to its scale and the substantial amounts involved. This investigation comes amidst stringent monitoring of Chinese companies in India for financial irregularities.
The SFIO is a specialised government agency responsible for investigating large-scale corporate fraud, typically assigned cases by the central government when the ROC or other regulatory bodies detect anomalies. The SFIO thoroughly examines company records, financial transactions, and dealings with related parties, and can summon company directors and officials for questioning if necessary. Upon completing its investigation, the SFIO submits its report to the ministry, which may pursue legal action in a special court based on the findings.
view comments
Read More
