Ministry of Corporate Affairs orders serious fraud probe on Vivo India; regional director to inspect MG Motor India

Chinese companies continue to face the heat in India, this time the Ministry of Corporate Affairs has ordered detailed investigations over alleged financial irregularities in the books of account of MG Motors India and Vivo Mobiles India.

Sources have told CNBC-TV18 that “MCA’s oversight committee has ordered a SFIO (Serious Fraud Investigation Office) probe against Vivo Mobiles and has asked the regional director under DG investigations to probe MG Motors India.”
The probe is over alleged financial irregularities and the Chinese investments in these two companies.

Meanwhile, when CNBC-TV18 approached both the companies, MG Motor India said, “MGI has not been approached by MCA in the last few months. We were approached last year by them, and we fully cooperated with the authorities concerned and provided them with all relevant information, post which no further query was raised for us.”
But, Vivo India declined to comment on the story.
This move comes after Registrars of Companies (RoC) submitted the findings of its initial investigation over these allegations against both Vivo India and MG Motor India.
RoC after its investigations had advised the Ministry of Corporate Affairs for a detailed investigation as they found enough evidence of alleged irregularities, sources added.
To be seen is the final outcome of the probe against both MG Motor India and Vivo Mobiles India.

Leave a Reply

Your email address will not be published. Required fields are marked *