Indian police accuse Chinese telcos of funding investigated news portal

NEW DELHI – Indian police have formally accused Chinese smartphone makers Xiaomi and Vivo Mobile of helping transfer funds illegally to a

news portal under investigation

on charges of spreading Chinese propaganda, documents showed on Friday.

A Xiaomi India spokesperson strongly denied the accusation. A spokesperson from Vivo did not respond immediately to repeated requests for comment, nor did the NewsClick news portal, which has denied all wrongdoing in the past.

Media rights and opposition groups in India have said the

investigation into NewsClick

and surrounding accusations are part of a crackdown on the press – a charge dismissed by the government.

The allegations were laid out in a police complaint that was filed on Aug 17.

It was shared with lawyers for people named in the complaint on Friday, days after officers raided NewsClick’s New Delhi office and journalists’ homes, then arrested its founder-editor Prabir Purkayastha and a senior administrative official.

The complaint, a copy of which has been seen by Reuters, accused Mr Purkayastha of conspiring with a little-known voluntary group to disrupt India’s sovereignty and cause disaffection.

The police document said that as part of this plan, large amounts of funds were received from China to push biased news criticising Indian policies and projects and defending Chinese policies and programmes.

“It is further learnt that big Chinese telecoms companies like Xiaomi, Vivo, et cetera incorporated thousands of shell companies in India in violation” of India’s foreign currency laws “for illegally infusing foreign funds in India in furtherance of this conspiracy”, the complaint said.

A senior police officer confirmed the document was genuine and that it made allegations about those two companies.

The spokesperson for Xiaomi, referring to the first information report, as a police complaint is formally called in India, said: “We have no knowledge about this. We strongly deny the said allegation against Xiaomi in the FIR.”

The spokesperson added: “Xiaomi conducts its business operations with utmost respect to, and in strict compliance of applicable laws. Any allegation of conspiracy is completely baseless.”

Xiaomi and Vivo are among India’s biggest phone brands.

The police document did not go into further detail about how the information had been obtained, set out any proof of the companies’ involvement or say what steps the police were now considering.

NewsClick has said it does not publish any news or information at the behest of any Chinese entity or authority. Its lawyers have challenged the complaint in the Delhi High Court.

China has dismissed accusations of interference in India in the past and has urged New Delhi to provide a fair and non-discriminatory environment for Chinese companies.

Ties between India and China nosedived after a 2020 military clash on their disputed Himalayan border in which 20 Indian soldiers and four Chinese soldiers were killed.

Although border tensions have been reduced after several rounds of military and diplomatic talks, New Delhi says relations cannot return to normal until there is complete disengagement and de-escalation. REUTERS