Xiaomi assets worth $725 million seized in India

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The Enforcement Directorate in India confiscated $725 million from Xiaomi India’s bank accounts over the weekend. Three foreign-based businesses received the equivalent of INR55.5 billion from the Indian subsidiary of the Chinese manufacturer, according to the Indian government.

On behalf of their Chinese parent firm, Xiaomi Technology India Private Limited, the directors alleged that significant sums of royalties had been remitted (given to third parties). Rule 4 of the Foreign Exchange Management Act of 1999 was violated since it was done “for the ultimate profit of the Xiaomi group.” According to the law, “no individual residing in India shall […] transfer any foreign currency […] located outside India.”

All royalty payments and bank records are legitimate and accurate, according to Xiaomi India. There were in-licensed technology and intellectual property payments, according to the state government, that were utilised in Xiaomi’s Indian goods. In addition, it is “committed to working collaboratively with government authorities to clear any ambiguities.” “

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