Oppo China distributor offices in Rajkot, Hyderabad and Bangalore raided by IT department

Oppo, as well as Xiaomi and another BBK Electronics brand OnePlus, are reportedly facing an investigation by the Indian government’s income tax department. According to a report by The Economic Times, the IT department has been conducting raids since earlier this week and has targeted facilities associated with the three companies, as well as their contract assembly partners in China, Dixon and Rising Star.

The IT raids appeared to allege that companies withheld accurate earnings data, leading to tax evasion. Reports suggest that the IT department obtained intelligence from sources relevant to the matter. According to ET, Oppo’s distribution partners are also being raided, and facilities in NCR and Karnataka in Delhi.

“As an investment partner in India, we have great respect for and abidance by the laws of the country. We will continue to fully cooperate with the relevant authorities in accordance with the procedure, ”an Oppo ET spokesperson said. OnePlus and Xiaomi have not yet made any announcements regarding the raids.

Looking ahead, it remains to be seen whether assembly companies operating in India will also be investigated as part of the raids. Major Chinese operators such as Wistron Corp and Foxconn have reopened all assembly plants in India after the government introduced manufacturing incentive schemes (PLI) to attract smartphone assembly in the country.

This is not the first time that an Indian entity has been involved in setting up a smartphone assembly or distribution plant in that country. Apple contract manufacturer Wistron Corp saw a major employee riot break out at his facility, drawing police attention and exposing inconsistencies in how he paid his employees.

Looking ahead, it remains to be seen what the Indian income tax department will determine as a result of their raids – and whether OEMs will face any consequences as a result.