India seized $ 725 million from Siomi’s local bank accounts, an investigation revealed on Saturday (30.04.2022) by a Chinese company that illegally sent money abroad in the guise of royalty payments.
The Financial Crimes Investigation Agency of India began investigating the company in February and said it had seized the money from its local subsidiary after it was found to have exported to three companies overseas.
“These large sums in the name of royalty were sent on the instructions of the group’s Chinese parent companies,” the Enforcement Directorate said in a statement.
Xiaomi denied the India version, stating on Saturday night that its “operations are in strict compliance with local laws and regulations”.
Xiaomi India tweeted, “We believe our royalty payment and bank statements are legitimate and trustworthy.” “We are committed to working closely with government officials to eliminate any misunderstandings,” he added.
Authorities raided the company’s Indian office in December following another investigation into alleged income tax evasion.
Relations between China and India have been strained since the clashes on the Himalayan border between the two countries in 2020. The Indian Home Ministry has banned hundreds of mobile processors of Chinese descent, including the popular social media site DickTalk, claiming they are endangered by the Indian national sovereignty.
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