India seizes $725 million from Chinese phone maker Xiaomi over transfers

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authorities in India seizes $725 million from smartphone maker Xiaomi on Saturday after investigation found That the Chinese company violated the country’s foreign exchange laws by making it illegal money transfers abroad.

Implementation Directorate, India financial Investigative agency, on Twitter it captured amount From the local Xiaomi unit. The move It comes after an investigation was opened by the Federal Agency in February over Fears of Domestic illegal transfers media mentioned.

The agency said the smartphone maker transferred $725 million to “three foreign entities” under the guise of of Royalty payments, according to a statement carried by the Press Trust of India (PTI). Earlier this month, the agency also Doubt Xiaomi global Vice President, Manu Kumar Jain, in the company’s regional area office in southern city of Bengaluru, the Associated Press of Pakistan reported.

The smartphone company said it complied with local laws and added That the “royalty payments and declarations” were “legitimate and honest.” She is committed to working closely with The government To clarify any misunderstanding.

This royalty payments made by Xiaomi India made they were for in- licensed technologies The IPs used in Our Indian version products. It is a legitimate commercial arrangement for Such payments will be made by Xiaomi India, the statement said.

India Company office raided in December in separate investigation over Alleged income tax evasion. Other Chinese smartphone brands including Huawei also Their Indian offices were searched at the time.

Two years ago, India banned over 100 owned by China apps As the tensions between countries rose over Border clashes. In June 2020, Indian and Chinese forces fought with Clubs, stones and fists along a disputed section of their border, leaving 20 Indians and four Chinese soldiers dead.

Since February last yearBoth countries They withdrew troops from some locations, but still maintained a presence. In March, Chinese Foreign Minister Wang Yi traveled to New Delhi to discuss accelerating disengagement of Forces and potential of Calm down the situation.

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