This Chinese car company turned out to be a tax thief, took advantage of the government and created a mess, now investigation will be done
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New Delhi : Chinese automobile manufacturer MG Motors manufactures and sells cars in India. It earns profits from India and takes benefits from the government, but also creates chaos secretly. Due to this mess, the Ministry of Corporate Affairs of the Central Government has decided to take major action against this Chinese car company. It is alleged that this car manufacturing company has taken benefits from the Indian Government and transferred it to the Chinese Government and has evaded tax on the sale of vehicles on a large scale here. After getting wind of the matter, the Ministry of Corporate Affairs has ordered an investigation against MG Motors. It is being told in the media report that the MC investigation in MG Motors will be done by the Revenue Department Office (RDO).
Government asked for accounts
Media reports say that after getting wind of the tax irregularities, the Ministry of Corporate Affairs had recently summoned the directors and auditors of Chinese car manufacturing company MG Motors through the Registrar of Companies Office. He was called for questioning after the ministry found irregularities during the investigation. This company is accused of earning profits from India and sending the money to the Chinese government for tax evasion. The government is investigating these matters.
MG Motors sent money to the Chinese government
According to media reports, Chinese car manufacturer MG Motors had to face huge losses in the financial year 2019-20, for which the government had asked the reason. After this the government started investigating the financial statements of MG Motor India. The investigation revealed suspicious transactions, tax evasion, irregularities in billing and other things. At the same time, the auto company says that the rules have been followed by it. The company said that it is difficult for any auto company to make profit in the first year.
JSW Group will buy 35 percent stake of MG Motors
According to media reports, Sajjan Jindal-owned JSW Group has decided to buy 35 percent stake in Chinese carmaker MG Motor India for joint automobile operations in India on November 30, 2023. For this, JSW signed an agreement with China’s SAIC Motor. As per the agreement between the two companies, JSW Group will acquire 35 per cent stake in SAIC’s Indian subsidiary MG Motor India for an undisclosed amount.
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