The Ministry of Corporate Affairs (MCA) is considering expanding its investigation into the financial records of MG Motor India, according to individuals familiar with the matter. There are indications that the MCA may initiate a separate examination of the financial records of Vivo as well, a smartphone manufacturer already under scrutiny by the Enforcement Directorate (ED) for alleged money laundering, as per a report by the Economic Times.
The MCA's proposal for an extended probe into MG Motor India's financial records is reportedly based on the Registrar of Companies' 2022 findings, as per an insider.
An MG Motor India spokesperson stated that the company has not been contacted by the Ministry of Corporate Affairs (MCA) for any recent inquiries. Regarding the previous Registrar of Companies (RoC) inquiry in March, MG Motor India promptly furnished all necessary information within the designated timeframe, and no subsequent queries were raised. The spokesperson emphasised, "We are a reputed multinational, law abiding organisation."
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MG Motor India, had earlier, received a notice from the Ministry of Corporate Affairs (MCA) demanding an explanation for the reported operational losses in the 2019-20 annual report, as communicated by the company at that time.
Regarding Vivo, the Enforcement Directorate (ED) detained four individuals, including a Chinese national, in a 2022 money laundering case last month. Following the arrests, Vivo affirmed its commitment to ethical principles and expressed the intent to explore all available legal avenues.
"The RoC has submitted its report on MG Motor India and the MCA will soon take a call on the need for a wider probe," as per sources cited by the Economic Times.
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