The Income Tax department has carried out search operations at multiple premises of Chinese telecom major Huawei in the country. The raids were conducted on Tuesday at the company premises in Delhi, Gurugram (Haryana) and Bangalore in Karnataka.

The move was part of a tax evasion investigation and some records have been seized too, reported Press Trust of India.

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The IT department officials screened financial documents, account books and company records as a part of a tax evasion investigation against the company, its Indian business operations and overseas transactions. The company’s senior India management was put through questioning, reported the Times of India citing sources.

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A few months ago, similar search operations were conducted in the premises of ZTE, a Chinese tech company.

Reacting to the search operation, Huawei said its operations in India were “firmly compliant” with the laws and regulations. It added that it will fully cooperate with the tax authorities, follow the right procedure and will go to relevant government departments for more information.

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The Indian government has kept Huawei out of trials for 5G services. However, telecom operators are permitted to source telecom equipment from Huawei and ZTE under their old agreements for maintaining their networks. Before stepping into any new business agreement the companies will need government approval as per the National Security Directive on Telecommunication Sector.

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Last year, the tax authorities conducted raids against Chinese mobile communication and handset manufacturing companies like Xiaomi and Oppo and associated persons. The department claimed to have found alleged unaccounted income worth over Rs 6,500 crore due to violation of the Indian tax law and regulations.

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Earlier this week, the Information and Technology ministry blocked 54 more Chinese apps citing security and privacy concerns. The list of banned apps included Tencent Xriver, Nice Video baidu, Viva Video Editor, and gaming app Garena Free Fire Illuminate.

The Enforcement Directorate (ED) has also conducted searches and seized assets of Chinese companies and non-banking financial companies (NBFCs) offering instant loans through mobile apps in India.

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The strong up action against Chinese companies operating in India comes in the backdrop of the military stand-off in eastern Ladakh.