Xiaomi is seized for $725 million over remittances from India

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New Delhi, India (AP) — The Chinese smartphone company Xiaomi was accused of violating India’s foreign exchange laws by sending illegal remittances abroad, prompting Indian authorities to seize $725 million from the company on Saturday, according to officials.

A tweet from India’s financial investigation agency, the Enforcement Directorate, stated that it had seized the money from Xiaomi’s Indian subsidiary. Local media reported that the federal agency had begun an investigation in February into allegations of illegal remittances.

It was reported in an official statement by India’s Press Trust of India that “three foreign-based entities” had received a payment of $725 million from the smartphone maker in the name of royalty payments. At the company’s regional office in the southern city of Bengaluru, PTI reported that agency agents also questioned Xiaomi global vice president Manu Kumar Jain earlier in the month.

The smartphone company stated that it complied with local laws and that its “royalty payments and statements” were “legit and truthful.” In a statement, the company said it would work closely with the government to clear up any misconceptions.

“These royalty payments were made by Xiaomi India for in-licensed technologies and IPs that were used in our Indian version products.” These royalty payments are being made as part of a legitimate commercial arrangement, “read the statement from Xiaomi India.

Over 100 Chinese-owned apps were banned in India two years ago as tensions between the countries rose over border clashes. As of June 2020, 20 Indian and four Chinese soldiers were killed in a border dispute between the two countries, which was fought with clubs and stones.

There have been some troop withdrawals since February of last year, but both countries still maintain a presence. Foreign Minister Wang Yi visited New Delhi in March to discuss the possibility of de-escalating the situation and expediting troop withdrawals from the disputed Himalayan area.

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Zaid Quraishi
My name is Zaid Quraishi. I pride myself on being a meticulous and organized individual who has done his Bachelors in Medical Technology and currently pursuing my Master's in the same course from Sher-e-Kashmir Institute of Medical Sciences. I belong to the beautiful valley of Kashmir, and my hometown is Srinagar. I am the elder sibling of my younger brother. As far as my strengths are concerned, I am effectively communicative, optimistic, reliable, a team player, and time-efficient. My weaknesses are that I am an honest person and I tend to be blunt, and sometimes, I like to work alone. I am passionate about content writing, online gaming, and learning new things, especially languages (currently German). I have written two papers for my University degree, which helped me immensely in learning how to write effectively. I am confident in my writing skills, and I can effectively pour my thoughts out in writing and express myself so that the reader relates to it and is intrigued by the content. I love to play with my pet cat, and she is a darling to me. The thing that I dislike the most is being distracted when you are in the zone. Currently, I am a content writer in a dynamic work environment at Shouzy, ready to improve readers' satisfaction and increase retention levels.

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