The Directorate of Revenue Intelligence (DRI) has detected Customs duty evasion to the tune of Rs 2,217 crore by the Indian subsidiary of China’s Vivo Communication Technology Co. Ltd, according to information provided by the Finance Ministry today.

During the course of investigation, searches were conducted by DRI officers at the factory premises of M/s Vivo India, which led to the recovery of incriminating evidence indicating wilful misdeclaration in the description of certain items imported by M/s Vivo India, for use in the manufacture of mobile phones.

M/s Vivo India is engaged in the business of manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories.

This misdeclaration resulted in wrongful availment of ineligible duty exemption benefits by M/s Vivo India, amounting to Rs 2,217 crore. After completion of the investigation, a show cause notice has been issued to M/s Vivo India demanding Customs duty amounting to Rs. 2,217 crore be paid. 

A sum of Rs 60 crore has been voluntarily deposited by M/s Vivo India, towards payment of the duty liability.

Recently, in another set of investigations conducted by DRI, show cause notices demanding duty of Rs. 4,403.88 crore have been issued to M/s Oppo Mobiles India Private Limited and Chinese company.