(Yicai Global) Dec. 28 -- Tax officials in India have raided the offices and manufacturing units of Chinese mobile phone makers with plants, warehouses, and offices in the country, as well as the Indian companies that work with them.

The raids took place across more than 20 regions over the course of a night and a day, the finance ministry’s income tax department said once the action ended on Dec. 22. The raids included the homes of senior executives at the Chinese firms and their distributors along with the questioning of some executives, according to people familiar with the matter.

The income tax department had received information that the companies were suspected of fraudulent accounting and tax evasion, a ministry insider told the media. But the evidence has not yet been made public.

The blitz began at the offices of Xiaomi, Oppo Mobile Telecommunications, and Hon Han Precision Industry, better known as Foxconn, in the Sriperumbudur industrial park near Chennai, India’s fourth-largest city. It then expanded to other cities including Delhi, Mumbai, Bangalore, Kolkata, and Guwahati.

The Indian branches of Xiaomi and Oppo issued statements on Dec. 22 pledging to cooperate with the country’s government as they attach great importance to complying with Indian law.

Tax probes of Chinese-funded companies by Indian officials have been incessant recently, sparking widespread concern because of the scale of the action, Sha Jun, co-founder of the India Investment Services Center of Yingke Law Firm, told Yicai Global.

Chinese mobile phone brands had a 74 percent market share in India in the third quarter of this year, according to data from Counterpoint Research. Xiaomi, Vivo Communication Technology, Realme, and Oppo took four of the top five spots for market share.

Other phone makers have had similar experiences at Sriperumbudur in the past. Finland’s Nokia had its largest manufacturing base in the industrial park, but was forced to close it in 2014 after the local government confiscated its asset there over a tax dispute.

Editors: Liao Shumin, Futura Costaglione