An investigation by the Directorate of Monetary Intelligence (DRI) found that the Chinese smartphone maker evaded taxes of 43.89 billion rupees ($551 million).


According to the Indian Ministry of Finance, DRI searched Oppo's office in India and questioned its management Indian investigators found evidence of Oppo taking advantage of tax exemptions for imported items used in the manufacture of mobile phones. They also accused Oppo of not including various royalty fees paid to foreign businesses when calculating the value of imported goods.

Senior executives and suppliers for Oppo have admitted mistakes, while the Chinese company paid 4.5 billion rupees in advance. An Oppo spokesperson told Reuters it had "different views on fees" and believed it was an "industry issue".

DRI also proposes to sanction Oppo India along with its employees and Oppo China.

Many mainland businesses have found it difficult to operate in India since political tensions escalated following a clash at the border between the two countries in 2020. India cited security concerns to ban more than 300 Chinese apps. and tighten regulations on investment from this country.

The action against Oppo comes amid increasing scrutiny of Chinese smartphone brands. India's Anti-Money Laundering Authority last week raided 48 locations of Vivo and related companies, accusing Vivo of transferring Rs 624.76 billion of domestic revenue abroad to report losses and evade taxes. They confiscated cash and gold worth 4.65 billion rupees ($59 million) from Vivo and related companies. A local court lifted an order to freeze Vivo accounts after the company pledged to pay.

Xiaomi is also under investigation. Authorities accused the company of illegally transferring money abroad under the guise of royalties.