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Friday, 5 December 2008 09:33 UK Bengaluru, India


 

Indian government threatens to close down Chinese telco

Huawei faces the music

By Subhankar Kundu @ Tuesday, August 26, 2008 7:41 AM

 
 

The Indian government has accused the Chinese telecom firm Huawei of fraud in its employment and human resources practices.

The Chinese telecom major has been allegedly employing a huge number of workers in China without proper work permits. It has also been accused of misappropriation relating to the payment of taxes. If the government is to be believed, then Huawei may have to face the music soon, as the government has already threatened to shut the company’s shop in India.

In a notice issued by the Indian Ministry of Labour and Employment, it claims that Chinese employees are working in India without proper work permits and without paying applicable income tax. A case is likely to be filed against the company. In such circumstances, senior officials such as the CEO and other directors of the company may face penalties or imprisonment following the closure of the business.

Huawei is not commenting on the matter. X

 
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