India has seized belongings value roughly $725 million from Xiaomi India after the nation’s anti-money laundering company discovered the subsidiary had damaged native international trade legal guidelines. According to, India’s Enforcement Directorate introduced Saturday it just lately decided Xiaomi had made unlawful remittances when it tried to cross off some transfers as royalty funds.
That cash went to a few international firms, together with one underneath the broader Xiaomi banner. The Enforcement Directorate discovered Xiaomi designed the funds to learn itself. “Such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities,” the company stated. The Indian Enforcement Directorate started investigating the subsidiary, amongst a handful of different native Chinese companies, final December. It accused Xiaomi of offering “misleading information to the banks while remitting the money abroad.”
On Twitter, Xiaomi said it believes its funds have been legit. “These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products,” the company stated. “We are committed to working closely with government authorities to clarify any misunderstandings.” We’ve reached out to the corporate for added info and remark.
As of final yr, Xiaomi was India’s main smartphone producer, with a dominant of the market. But like many Chinese companies in India, it has just lately been compelled to navigate a regulatory regime that has turn into much less welcoming of Chinese enterprise pursuits. In 2021, India briefly following the nation’s border dispute with China and later reportedly WiFi gadget approvals to encourage home manufacturing.
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