Chinese companies operating in India need to follow law of land: MEA

Chinese companies operating in India need to follow the law of the land, the Ministry of External Affairs said on Thursday, a day after China reacted to the ongoing probe into alleged irregularities by Chinese smartphone maker Vivo.

External Affairs Ministry Spokesperson Arindam Bagchi said Indian authorities are taking steps in the case in accordance with the law of the land.

"Chinese companies which operate here need to follow the law of the land and I think our legal authorities are taking steps as per the law of the land," he said at a media briefing.

Bagchi was asked to comment on remarks on the probe by a spokesman of the Chinese embassy.

"I do not see the need to make such comments," Bagchi said.

The Enforcement Directorate is carrying out the investigation against Vivo under the provisions of Prevention of Money Laundering Act.

The agency on Thursday said that a whopping Rs 62,476 crore has been "illegally" transferred by the smartphone maker to China in order to avoid payment of taxes in India.

The Chinese embassy spokesperson said on Wednesday that the frequent investigations by Indian authorities into Chinese enterprises not only disrupt their normal business activities and damage their goodwill but also impede the business environment in India.

"The essence of China-India economic and trade cooperation is for mutual benefit and win-win results," Spokesman and Counsellor Wang Xiaojian said in a statement.