GoI begins probe on MG Motor India over alleged financial irregularities

New Delhi: A probe has begun on MG Motor India private limited by officials of India over alleged financial irregularities as another operation against Chinese firms operating in the country, international media reported.

The probe against the local unit of the Chinese carmaker SAIC Motor Corp Ltd has been initiated by the Ministry of Corporate Affairs of India, Bloomberg reported.

The report said the scrutiny started after a detailed analysis of the company’s financial statements indicated suspicious related-party transactions, alleged tax evasion, under and over-invoicing of bills and other irregularities, the people said, asking not to be identified as the matter is not public.

The company’s top management, including directors, managing director and auditors have been summoned next month by the ministry seeking more clarification, the report said quoting the people familiar with the development.

The move follows similar action against other China-based firms including Xiaomi Corp, local units of ZTE Corp, Oppo and Vivo Mobile Communications Co Ltd amid continued hostility between the two nuclear-armed neighbours since 2020 when the deadliest fighting in decades erupted along their disputed Himalayan border.

MG Motor said it has been a sent a notice seeking clarifications on why the company posted an operational loss in the first year of business in 2019-2020.

“We fully cooperate with the government authorities on all issues and are in process of providing the desired records and information to the Registrar of Companies within the stipulated time frame,” the report quoted the company saying in a statement.

Click to comment
To Top