Modi government probes Vivo, OPPO, Xiaomi over ₹6,000cr fraud
What's the story
Indian government's Serious Fraud Investigation Office (SFIO) is probing Chinese smartphone makers Vivo, OPPO, and Xiaomi over alleged fund diversion. The scrutiny was ordered by the Ministry of Corporate Affairs (MCA) after a report from the Registrar of Companies (RoC). The SFIO's investigation started in March, as per Moneycontrol, and is expected to take around a year to complete.
Fund diversion
Vivo, OPPO, and Xiaomi together diverted some ₹6,000 crore
The RoC report alleged that the three smartphone manufacturers together diverted some ₹6,000 crore. This allegation prompted the MCA to direct the SFIO to conduct a detailed investigation. Once the investigation is complete, the SFIO will submit its findings to the MCA which can take legal action against company directors and related entities in a special court.
Detailed scrutiny
RoC report on these companies was finalized in early 2025
The RoC's report on Xiaomi, Vivo, and OPPO was finalized after months of scrutiny earlier this year. It recommended a more detailed investigation into alleged fund diversion, possible tax evasion, and financial transactions with related entities. The findings were also sent to the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) for tax-related matters.
Investigation process
What is the SFIO?
The SFIO is a specialized agency under the MCA that investigates complex corporate frauds involving large-scale financial irregularities. Cases are referred to it by the central government, often based on findings from the RoC or other regulators. Once the SFIO completes its investigation, it files a detailed report with the MCA, which can then initiate legal proceedings in a special court.