India should give fair legal treatment to Vivo, OPPO, Xiaomi: Chinese state media

New Delhi: As the Indian probe agencies tighten the noose around Chinese smartphone makers like Vivo, OPPO and Xiaomi, the Chinese state-run media has said that the companies should not give up using legal weapons to defend their legitimate rights.

If the Indian legislation system really fails them, it will be a huge loss to both sides, according to an opinion piece in Global Times.

“For Chinese companies such as Vivo that have long contributed to the Indian economy and operate legally in the local market, legal weapons have become the last line of defence for these companies to continue their business in India,” it read.

On Wednesday, the Delhi High Court allowed Vivo to operate its bank accounts on the condition of furnishing a bank guarantee of Rs 950 crore and maintaining Rs 250 crore in its accounts.

The court also directed the Chinese firm to submit details about its bank activities and remittances to the Enforcement Directorate (ED) and posted the matter for further hearing on July 28.

Last week, the ED had conducted searches on the premises of Chinese companies, including smartphone maker Vivo, at 44 locations in 22 states.

The probe agency found that Vivo remitted 50 per cent of its total sales — Rs 62,476 crore — to China.

The Global Times report said that for Vivo, taking up legal weapons to protect its rights and interests is a forced move to resume normal operations.

“Although filing a lawsuit must bear a certain cost of time and money, it is the most reasonable choice available to the company,” it said, adding that for Indian financial investigating authorities and courts, as the Vivo case has attracted wide spread attention, “it is imperative for them to take efficient, fair and transparent action”.

“If the Indian court does not handle this case fairly or discloses information in a timely manner, it will certainly undermine the authority of the Indian legal system and further damage India’s business environment,” the paper said.

As the Directorate of Revenue Intelligence (DRI) unearthed alleged customs duty evasion of nearly Rs 4,389 crore by OPPO India, the smartphone maker on Wednesday said it would take appropriate steps against the DRI show cause notice, including “remedies provided under the law”.

The DRI said in its statement that it detected that Oppo Mobiles India Private Ltd has evaded customs duty of around Rs 4,389 crore.

In April, the ED had said they seized Rs 5,551.27 crore of Xiaomi Technology India Private Ltd lying in the bank accounts under the provisions of Foreign Exchange Management Act in connection with the illegal outward remittances made by the company.