WhatsApp Logo Subscribe
For News Alert

News

India seizes 725m from China s Xiaomi over illegal remittances

May 1, 2022 03:51 PM


Twitter Share Facebook Share WhatsApp Share

India seized $725 million from the local bank accounts of Xiaomi after a probe found the Chinese smartphone giant unlawfully sent money abroad in the guise of royalty payments, authorities said Saturday.

India's financial crime investigations agency began investigating the company in February and said it seized the money from the firm's local arm after discovering it had made remittances to three foreign-based entities.

"Such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities," the Enforcement Directorate said in a statement.

Xiaomi India has denied the allegations, saying late Saturday that its "operations are firmly compliant with local laws and regulations".

"We believe our royalty payments and statements to the bank are all legit and truthful," Xiaomi India tweeted.

"We are committed to working closely with the government authorities to clarify any misunderstandings."

The firm's India office was raided in December in a separate investigation over alleged income tax evasion. 

Other Chinese smartphone makers including Huawei also had their Indian offices searched at the time.

Relations between New Delhi and Beijing have been at a low ebb since a deadly Himalayan border clash between soldiers from both countries in 2020. 

In the aftermath, India's home ministry banned hundreds of mobile applications of Chinese origin, including the popular social media platform Tiktok. 

The government justified the bans on the apps as safeguarding against threats to India's sovereignty.

Anti-China sentiment has grown in India since the fatal 2020 troop clash, sparking calls for consumer boycotts of Chinese goods.

China continues to be a key economic partner for India, with more than $125 billion in bilateral trade last year according to media reports.



Most Read

  1. Fans go gaga over Sajal Aly and Iqra Aziz chemistry in latest photoshoot Fans go gaga over Sajal Aly and Iqra Aziz chemistry in latest photoshoot
  2. Islamabad turns into ‘fortress’ ahead of PTI protest Islamabad turns into ‘fortress’ ahead of PTI protest
  3. Punjab CM Maryam lays foundation of country’s first autism school Punjab CM Maryam lays foundation of country’s first autism school
  4. Diljit Dosanjh invites Hania Aamir on stage during London concert, sings 'Lover' for her Diljit Dosanjh invites Hania Aamir on stage during London concert, sings 'Lover' for her
  5. Army soldiers guard Islamabad, Lahore sealed ahead of PTI protest Army soldiers guard Islamabad, Lahore sealed ahead of PTI protest
  6. Pakistanis feared among six migrants killed by Mexican soldiers in highway chase Pakistanis feared among six migrants killed by Mexican soldiers in highway chase