Probing MG Motor India and Vivo accounts is likely to be ordered by the center

 Probing MG Motor India and Vivo accounts is likely to be ordered by the center

Earlier in November, the MCA called the company's auditor, Deloitte, and directors to explain some audit errors found during the investigation via the registrar of companies (RoC).

A division of SAIC Motor, a Chinese automaker, is MG Motor India.

According to a report by CNBC TV18, the Ministry of Corporate Affairs (MCA) is anticipated to suggest an inquiry into the financial records of Chinese automaker MG Motor India and Beijing-based smartphone manufacturer Vivo. The monitoring of Chinese businesses doing business in the nation is heightened by this step.

Earlier in November, the MCA called the company's auditor, Deloitte, and directors to explain some audit errors found during the investigation via the registrar of companies (RoC). In accordance with section 207 of the Companies Act of 2013, the directors were called.

The firm had received a notification from the government asking it to explain its losses from the 2019–2020 fiscal year, which was its first year of business in India. According to Bloomberg, which cited people familiar with the matter, the government launched the investigation after MG Motor India's financial statements were examined and it was discovered that there were questionable related-party transactions, claims of tax evasion, billing disparities, and other irregularities.

In response, the car giant emphasized that it is a law-abiding business that is committed to openness and that it would always uphold the highest standards of governance and compliance.

MG Motor India has said in its statement that "it is impossible for any manufacturing company to be profitable throughout the very first year of its operations."

In addition, the business television reported, citing court documents and attorneys involved in the case, that the MCA is anticipated to order an investigation into Vivo's accounts almost a month after the Enforcement Directorate (ED) detained four business executives, one of whom was a Chinese national employed by the smartphone manufacturer in India, on suspicion of money laundering.