The Ministry of Corporate Affairs (MCA) is reportedly considering expanding its investigation into the financial records of MG Motor India and initiating a probe into the books of smartphone manufacturer Vivo, which is already under scrutiny by the Enforcement Directorate for alleged money-laundering activities.
What Happened: The potential recommendation for a broader inquiry into MG Motor India’s financial records comes in the wake of the Registrar of Companies’ (RoC) findings in a case from 2022, Economic Times reported, citing sources.
MG Motor India has said it has not been contacted by the MCA for any recent queries while affirming that it had provided all necessary information to the RoC within the specified timeframe, and no further queries were raised. The spokesperson emphasized that MG Motor India is a reputable multinational organization committed to legal compliance.
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In late 2022, MG Motor India received an MCA notice, questioning the operational losses based on the annual report for the first year of operations in 2019-20.
The ED had arrested four Vivo officials, including a Chinese national, last month in connection with a 2022 money-laundering case. The RoC has reportedly submitted its report on MG Motor India, and the MCA is expected to decide soon on the necessity of a broader investigation.
Earlier this year, reports indicated that China’s SAIC Motor Corp intended to reduce its ownership in MG Motor India, allowing Indian entities to take a majority stake. Sajjan Jindal, chairman of the JSW Group, was reported to have finalised a strategic alliance involving MG Motor, a wholly owned subsidiary of SAIC.
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