Xiaomi, a Chinese telecom company, said Saturday that it is committed to working with the Indian government to clear up any “misunderstandings” following the seizure of Rs 5,551.27 billion in assets by the Enforcement Directorate (ED).
All of our operations are in full compliance with Indian laws and regulations because we are a brand dedicated to India. We’ve carefully studied the government’s directive, and we’re ready to go. ” In a statement, a Xiaomi spokesperson stated
In our opinion, we have no reason to doubt the veracity of our bank statements or royalty payments. These royalties were paid by Xiaomi India in relation to in-licensed technologies and intellectual property rights (IPs) used in our Indian version products. For Xiaomi India, making royalty payments is a legitimate business arrangement, as well.
A Xiaomi spokesperson added in the statement that the company is “committed to working closely with government authorities to clear up any misunderstandings.”
The company issued a statement after the Enforcement Directorate (ED) said it had seized Rs 5,551.27 crore of assets from the bank accounts of Xiaomi Technology India Pvt Ltd.
The Foreign Exchange Management Act (FEMA) is at the heart of the ED’s crackdown on Xiaomi, which stems from illegal remittances the company made in February.
Three foreign entities, one of which is a Xiaomi group company posing as royalty, received money from the company in the amount of Rs 5,551.27 crore, as reported by the Enforcement Directorate (ED).
In accordance with the instructions of their Chinese parent group entities, such enormous sums were remitted as royalties. The ED stated that the money was paid to two separate US-based non-affiliated entities for the benefit of the Xiaomi group entities.