India has seized assets worth approximately $ 725 million from Xiaomi India after the country’s anti-money laundering agency found that the subsidiary had violated local currency laws. According to Reuters, India’s law enforcement agency said on Saturday that it had recently discovered that Xiaomi had made illegal remittances when it tried to hand over some remittances such as royalty payments.
The money went to three foreign companies, including one under Xiaomi’s broader banner. The law enforcement agency found that Xiaomi designed the payments to benefit itself. “Such huge sums in the name of royalties were transferred on the instructions of their Chinese subjects from the parent group,” the agency said. India’s law enforcement agency launched an investigation into the subsidiary, among a handful of other local Chinese companies, last December. He accused Xiaomi of “providing misleading information to banks while transferring money abroad”.
On Twitter, Xiaomi said it believed its payments were legal. “These copyright payments made by Xiaomi India were for licensed technologies and IP addresses used in our Indian version products,” the company said. “We are committed to working closely with public authorities to clear up any misunderstandings.” We contacted the company for additional information and comment.
Since last year, Xiaomi has been the leading smartphone maker in India with a dominant share of 24 percent of the market. But like many Chinese companies in India, it has recently been forced to turn to a regulatory regime that has become less welcoming to Chinese business. In 2021, India temporarily banned TikTok following the country’s border dispute with China and later reportedly banned WiFi device approvals to encourage local production.
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