The Enforcement Directorate (ED) on Tuesday raided 40 locations of Chinese mobile companies. According to CNBC-TV18, the ED has conducted the raid in violation of Prevention of Money Laundering Act (PMLA) rules.
Chinese mobile companies are on the radar of Income Tax Department. Along with this, the Home Affairs and Corporate Affairs Ministers are also keeping a watch on Chinese mobile companies.
Shares of Dixon Tech are down 2% after news of the ED raid. The ED had said on April 30 that it had seized Rs 5,551.27 crore from the local unit of Chinese company Xiaomi India.
Xiaomi India is accused of sending remittances illegally. The probe agency said that the seizure was made from the company’s bank accounts under the provisions of the Foreign Exchange Management Act (FEMA).