India seizes $ 725 million from Xiaomi for money laundering

New Delhi, Apr 30 (EFE) – $ 725 million has been seized from a Chinese subsidiary of Xiaomi, an Indian subsidiary accused of money laundering, the Financial Crimes Investigation Agency of India said on Saturday.

“Rs 55,510 crore (approximately $ 725 million) in various bank accounts have been seized from Xiaomi Technology India Pvt Ltd under the provisions of the Foreign Exchange Management Act 1999,” the Indian government said on Twitter.

According to the agency, the seizure was “in connection with the illegal sending of money abroad by the company”.

The Chinese telephone and technology maker, which began operations in India in 2014, has been accused of illegally sending millions of dollars to three foreign companies disguised as copyright and royalty.

Despite the fact that Xiaomi India does not use the services of these companies, including the company that belongs to the Xiaomi Group, according to the agency.

India claims that the transfers were made under the direction of the parent company for the benefit of Xiaomi.

Xiaomi’s offices and Chinese technology company Oppo, one of the world’s largest smartphone retailers, have been banned from taxing millions of dollars in tax evasion in a separate tax evasion case last December.

The escalation of tensions between New Delhi and Beijing has led to a study by Chinese companies in India, which has blocked more than 200 applications of Chinese descent in the past two years.

In the Calvan Valley, west of Pangong Lake, relations between the two countries began to deteriorate after a worst border conflict in 45 years between the nuclear powers, in which at least 20 Indian soldiers were killed and 76 wounded.

Both forces sent troops to the LAC by sending troops into the conflict, which has since exacerbated military tensions in the region. New Delhi and Beijing sought to resolve the crisis through diplomatic channels. EFE

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