India’s apex court has directed government authorities not to threaten or take action against a chartered accountant, who allegedly assisted Alibaba Group Holdings BABA Indian cloud unit in business incorporation.
What Happened: The Supreme Court of India directed the Registrar of Companies (RoC) and the Maharashtra Police not to take any coercive action against C.A. Anand Kidambi until further orders, according to the Economic Times.
Kidambi and Alibaba India’s cloud unit are a part of a nationwide investigation in India against more than 700 firms as it cracks down on Chinese companies in India.
Indian authorities have registered a case against Alibaba on the grounds of cheating, criminal breach of trust, and conspiracy, along with certain sections of the Information Technology (IT) Act.
The government is now reportedly mulling roping in the Solicitor General of India, who would represent the government in the top court.
See Also: Why Alibaba, Nio, Chinese Peers Are Trading Mixed In Hong Kong Today
The report pointed out that the government has received inputs that many of the Indian subsidiaries of the Chinese firms, including Alibaba, were allegedly hosting a mobile application being used to cheat people.
In recent months, the Indian government has banned many Chinese apps in the country, including those of Tencent Holdings TCEHY, and Baidu Inc BIDU, among others.
Price Action: According to data from Benzinga Pro, shares of Alibaba Group closed 2.80% higher at $96.05 apiece.
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