The government is yet to clear the proposed joint venture between Dixon Technologies and Vivo India, with the proposal still under review amid the ongoing Enforcement Directorate probe into Vivo
The probe is being conducted under the Prevention of Money Laundering Act, government sources told NDTV Profit.
According to sources, the Ministry of Home Affairs is expected to take a final call on the proposal soon. However, Vivo's continuing scrutiny by the Enforcement Directorate could weigh on the approval process.
Dixon and Vivo had announced the joint venture in December 2024 to manufacture smartphones and other electronic devices in India, in what was seen as a significant move in the country's electronics manufacturing ecosystem.
The development comes against the backdrop of an ongoing ED investigation into Vivo Mobile India under the Prevention of Money Laundering Act.
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The agency has alleged that Vivo illegally transferred Rs 62,476 crore to China to avoid taxes and used a network of shell companies as part of the arrangement.
The probe, launched in 2023, has led to multiple arrests, including that of a Chinese national and Lava International Managing Director Hari Om Rai.
The Dixon-Vivo proposal is among several China-linked investment and partnership plans facing heightened scrutiny from Indian authorities amid tighter oversight of foreign investments in sensitive sectors.
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