The income tax department on Wednesday conducted a search on several offices of Chinese telecommunication firm Huawei, people familiar with the developments told news agency PTI. The IT department told news agency PTI that raids were carried out in Delhi, Gurugram and Bengaluru in Karnataka.
The officials familiar with the developments also said that financial documents, account books and company records were checked as part of a tax evasion investigation against the company. People familiar with the developments also told PTI that overseas transactions, illegal in nature, were rerouted to the parent nation of the company.
The action taken by the I-T department comes after Tencent Xriver, Nice Video Baidu, Viva Video Editor, and gaming app Garena Free Fire Illuminate along with 54 other apps, were banned by the Indian government citing security and privacy concerns. The Indian government earlier carried out raids on cell phone manufacturing companies like Xiaomi and Oppo citing that they detected alleged unaccounted income worth over Rs 6,500 crore amassed by evading tax.
Searches were conducted and assets were frozen of Chinese-controlled companies and non banking financial companies (NBFCs) which were disbursing loans via mobile apps.
Huawei has been barred from trials for 5G services in India. Businesses can, however, source telecom gear from Huawei and ZTE under their old agreements but these companies have to be compliant with the directions as per National Security Directive on Telecommunication Sector before they can work with business or forge new agreements.
The government has been critical of China’s role in eastern Ladakh and have held the nation’s expansionist policies for creating unrest in the region. The move also comes when nations of both armies are caught in a tense conflict.
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