xiaomi : Officials from India’s federal enforcement agency said on Friday that their decision to collect $725 million from local bank accounts of Chinese technology company Xiaomi Corp for alleged breaches of foreign currency regulations had been put on hold by an Indian court.
Following an investigation of xiomi, the Enforcement Directorate confiscated the bank assets of Xiaomi Technology India Private Limited, claiming that the business had unlawfully transmitted monies to three foreign-based organisations, including one Xiaomi group entity, “under the pretense of royalty” payments.
Xiaomi has categorically denied any wrongdoing, stating that its “royalty payments and bank records are all legitimate and accurate.” It subsequently filed a challenge against the judgement of the Indian financial crime combating agency in the High Court of Karnataka, which is located in the southern state of Karnataka.
After hearing from Xiaomi’s attorneys on Thursday, a court placed a halt on the Enforcement Directorate’s ruling xiaomi, according to the two sources, who asked not to be named because they were not authorized to talk to the media at the time.
Requests for comment from both Xiaomi and the Enforcement Directorate did not get a response right away. The formal court order has not been made public as of yet.
According to one of the individuals, the waiver was granted on the condition that Xiaomi notify Indian authorities of financial transfers such as royalty payments.
According to the Indian court’s website, the matter will be heard for the next time on May 12. According to Counterpoint Research, Xiaomi was the largest smartphone vendor in India in 2021, with a 24 percent share of the country’s smartphone market.
Reuters previously reported that Xiaomi’s former India chief, Manu Kumar Jain, had been summoned and interrogated as part of the directorate’s inquiry into the company’s finances.
Following a border skirmish in 2020, several Chinese enterprises have found it difficult to do business in India as a result of political concerns. Since then, India has banned more than 300 Chinese applications, including popular ones such as TikTok, citing security concerns. The country has also tightened regulations for Chinese corporations investing in India.
