Indian authorities seized $725 million from popular Chinese smartphone maker Xiaomi. The accusation is that Xiaomi’s sent illegal remittances abroad, breaking India’s foreign exchange laws.

The financial investigation agency of India, The Enforcement Directorate, stated in a tweet that the agency had seized $725 million from the local unit of Xiaomi. This was after the investigation done by the federal agency last February regarding the alleged illegal remittances.

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The agency stated that Xiaomi transferred the $725 million to three foreign based entities under the impression that they were royalty payments.

On the other hand, Xiaomi stated that they complied with the local laws and that the ‘royal payments and statements’ were legal. Xiaomi said that they will work closely with the Indian government in order to clarify certain misunderstandings.

Source: Reuters

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