Photo: Deutsche Welle/BEATA ZAWRZEL/NURPHOTO/IMAGO IMAGES / copyright
India seized 725 millions of dollars from Xiaomi’s local bank accounts, after an investigation revealed that the Chinese giant illegally sent money abroad under the guise of royalty payments, authorities said on Saturday (30.04.2022).
The Indian Financial Crimes Investigation Agency began investigating the company in February and said it seized money from its local subsidiary, after discovering it had sent money to three entities based abroad.
xiaomi: Explained: Why Xiaomi is in ‘trouble’ with the Indian government – Times of India https://t.co/Edmzzng1mM
— Indie Times (@times_indie) May 1, 2022
“Those huge amounts in the name of royalties were sent by instructions from the group’s Chinese parent entities,” he said. the execution address in a statement.
Xiaomi India denied the version and noted on Saturday night that its “operations are in firm compliance with local laws and regulations.”
“We believe that our payment of royalties and bank statements are legitimate and true,” tweeted Xiaomi India. “We are committed to working closely with government authorities to clear up any misunderstandings,” he added.
pic.twitter.com/QPfHboEP8X
— Xiaomi India (@XiaomiIndia) April 05, 2022
The authorities searched the company’s office in India in December following another investigation for alleged income tax evasion.
Relations between China and India are in low hours since the deadly clash on the Himalayan border between soldiers from both countries in 2020. The Indian Home Ministry has banned hundreds of Chinese-origin mobile apps, including the popular social media platform Tiktok, on the grounds that they endanger India’s national sovereignty.
gs (afp, ap)