The move against Oppo India comes amid the ongoing and growing scrutiny of Chinese companies by the Indian government as political tensions between the two neighbors intensify.
India’s Directorate of Revenue Intelligence, or DRI, has found customs duty evasion of around Rs 4,389 crore ($551 million) by Chinese smartphone maker Oppo, according to a government statement.
During the course of the investigation, the DRI officials found incriminating evidence indicating wilful misdeclaration in the description of certain items imported by Oppo India for use in the manufacture of mobile phones, which resulted in wrongful availment of ineligible duty exemption benefits of Rs 2,981 crore.
Further, Oppo India made payments of royalty and licence fees to various multinational companies, which were not added to the transaction value of the imported goods, and led to alleged duty evasion of Rs. 1,408 crore. The company voluntarily deposited a sum of Rs 450 crore as partial differential customs duty short-paid by them, the statement added.
A spokesperson for Oppo did not immediately respond to the media’s request for comment.
The move against Oppo India comes amid the ongoing and growing scrutiny of Chinese companies by the Indian government as political tensions between the two neighbors intensify. Last week, the Enforcement Directorate raided over 40 locations linked to Vivo India amid money laundering investigations. Another Chinese tech giant, Xiaomi, is undergoing an investigation for violation of the Foreign Exchange Management Act for illegally transferring funds abroad “in the guise of royalty payments”.