The long drawn tussle between Chinese companies and the Indian governments does not seem to be slowing down. Many of the top brass of Chinese based consumer electronics company, Huawei India have been asked to show up at the Delhi Court including the firm’s chief executive officer, Mr. Li Xiongwei and three others.
This mainly taking place as a complaint was issued by the income tax department. According to the complaint, the agency accuses the top brass of Huawei India of not revealing crucial information to them as a tax investigation is going on the company.
Many Chinese based tech companies and consumer electronics companies such as Xiaomi and Shopee have also been having issues with the Indian government, with their daily operations now facing big road blocks due to this tussle. This caused Shopee and its subsidiaries to also leave the Indian economy which was a major loss to them.
According to official reports, there it is assumed that there is a clear intention and motive by the parties involved. It goes on to say that there is a lot of indication and evidence on record to summon the parties who have broken the law and especially section 275 B and 278 B of the Income Tax Act. The maximum jail time for such an offence can go up to 2 years of confinement.
Before summoning the accused parties, they were allowed to send their statements to the Delhi Court which were promptly studied and examined by the court. The Court said publicly that after examining their statement and the statement that was sent to them by the Income Tax department, it is clear that Huawei diverted the investigations.
They went on to say that their attempts in trying to mislead the authorities by not revealing important documents and other accounting records have been found out. Huawei also took too long to give out the required documentation and data which should have been easily available and accessible to them, further unnecessarily dragging on the already slow probe.
Mr. Sandeep Bhatia who is the company’s CFO as well as Amit Duggal who is another top brass and Chinese national based in India, Mr. Long Cheng have all also been called up to the Delhi High Court along with their CEO.
It seems like this is just another saga in the battle between the Indian government and Chinese companies and this looks like its going have a sequel soon.
