NEW DELHI: The Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of around Rs 2,217 crore by Chinese firm Vivo Mobile India, according to an official statement released on Wednesday. Vivo India is a subsidiary company of Guangdong, China-based Vivo Communication Technology. The company is engaged in the business of manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories thereof.

During the course of the investigation, searches were conducted by DRI officers at the factory premises of Vivo India, which led to the recovery of incriminating evidence indicating wilful misdeclaration in the description of certain items imported by Vivo India, for use in the manufacture of mobile phones, according to a statement released by the Union Finance Ministry. This mis-declaration resulted in wrongful availing of ineligible duty exemption benefits by Vivo India, amounting to Rs 2,217 crore, the ministry said.

After completion of the investigation, a Show Cause Notice has been issued to Vivo India demanding Customs duty amounting to Rs 2,217 crore, under the provisions of the Customs Act, 1962, it added. A sum of Rs 60 crore has been voluntarily deposited by Vivo India, towards the discharge of their differential duty liability.

Recently, in another set of investigations conducted by DRI, Show Cause Notices demanding duty of Rs 4,403.88 crore has been issued to Oppo Mobiles India Private Limited, the Finance Ministry said.

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