Tax evasion: Accounts of MG Motor and Vivo may be investigated, Ministry of Corporate Affairs may recommend

The Ministry of Corporate Affairs may recommend initiating an investigation into the accounts of MG Motor India and Vivo. ROC had conducted an investigation a year ago and has now submitted the report of that investigation.

The investigation into MG Motor started in October 2022. At that time the company had said, we have received a notice seeking clarification regarding the losses for the first year of operations in the annual report for 2019-20. Suspicious transactions were detected in the investigation report submitted by the Registrar of Companies (ROC). Tax evasion, irregularities in billing and other financial irregularities were found. After the ROC report, MCA can issue orders for investigation. This matter has come to light when JSW and Shanghai’s SAIC Motor Corp are in talks for stake in MG Motor.

Government keeping an eye on 400-500 Chinese companies

The arrest of Vivo officials has increased the company’s legal troubles in India. The report in November 2022 said that according to an estimate, the government is investigating about 400-500 Chinese companies operating in India.