SFIO to Launch Formal Legal Action Against Vivo
The Serious Fraud Investigation Office (SFIO) is poised to file a formal chargesheet this December against Vivo, alleging improper fund diversion to the tune of more than INR 2,000 crore, according to government sources. The action stems from a broader probe into major Chinese smartphone manufacturers — including Oppo and Xiaomi — where suspected irregularities have been quantified at roughly INR 6,000 crore.
Authorities aim to investigate alleged financial misconduct under the Companies Act, 2013, specifically invoking Section 447, which carries civil and criminal penalties for corporate fraud once the chargesheet is adjudicated. Once filed, the final penalty will be determined by the Registrar of Companies (RoC).
Vivo — currently among India’s top-selling smartphone brands by volume — is expected to contest the allegations. Company representatives told reporters the transactions under scrutiny were legitimate business movements.
Probe Timeline and Wider Industry Implications
The process began earlier this year when a RoC report flagged irregular transactions at multiple smartphone companies, collectively amounting to around INR 6,000 crore. In response, the Ministry of Corporate Affairs (MCA) directed the SFIO to launch a thorough investigation. The probe was formally initiated around March 2025.
With Vivo’s case nearing formal chargesheet filing, the spotlight may soon shift to Oppo and Xiaomi, whose cases remain under scrutiny pending conclusion of their investigations.
The implications are significant for the entire smartphone manufacturing ecosystem in India. Observers suggest potential ripple effects for associated manufacturers and partners. For example, the shares of Dixon Technologies (India) Ltd — which holds a manufacturing joint venture with Vivo — dropped more than 3 per cent in intraday trading following the latest news.
If the chargesheet results in operational or regulatory hurdles for Vivo, the knock-on effects could destabilise manufacturing plans, joint ventures and even investor confidence across the sector.
