New Delhi: The Directorate of Revenue Intelligence (DRI) has searched the Indian unit of Chinese smartphone Oppo and unearthed customs evasion of Rs 4389 crore by Oppo India.
“During investigation, searches were conducted in the office premises by DRI Oppo India and the residences of its key management employees, which led to the recovery of evidence indicating intentional mis-declaration in the details of certain items imported by Oppo India for use in the manufacture of mobile phones. This wrong declaration resulted in wrongful availing of ineligible duty exemption benefit of Rs 2,981 crore by Oppo India. Among others, inquiries were made from senior management staff of Oppo India and domestic suppliers, who in their voluntary statements admitted to furnishing false details before the customs authorities at the time of import,” a DRI release said.
The DRI further said that the investigation also revealed that Oppo India Provision was made for payment of ‘royalty’ and ‘license fee’ to various MNCs including companies based in China in return for use of proprietary technology/brand/IPR license etc.
“The said ‘royalty’ and ‘license fee’ paid by Oppo India were not being added to the transaction value of goods imported by them, in contravention of section 14 of the Customs Act, 1962, Rules for Customs Assessment 10. (Determination of Value of Imported Goods) Rules 2007. The alleged duty evasion by M/s Oppo India on this account is Rs 1,408 crore,” the DRI said.
After the completion of the investigation, the DRI has issued a show cause notice to Oppo India showing the customs duty amounting to Rs. 4,389 crores.
Last week, the ED conducted searches at 48 locations across the country belonging to Vivo Mobiles India Pvt Ltd and its 23 affiliated companies such as Grand Prospect International Communication Pvt Ltd (GPICPL), and 119 bank accounts of various entities with gross balances so far. Searched. Under the provisions of PMLA, an amount of Rs 465 crore including FDs of Vivo India worth Rs 66 crore, 2 kg gold bars and cash of about Rs 73 lakh has been seized.