India Accuses Xiaomi Of Forex Violations In Latest China Clash
NDTV
The Enforcement Directorate said it has taken control of the bank accounts of Xiaomi Technology India under the provisions of the Foreign Exchange Management Act.
India accused Xiaomi Corp. of breaching the country's foreign-exchange laws and seized Rs 55.51 billion ($726 million) from a local unit of the smartphone maker, in India's latest clash with a Chinese company over their activities in the market. ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company. pic.twitter.com/QPfHboEP8X
India's anti-money-laundering agency took control of the bank accounts of Xiaomi Technology India under the provisions of the Foreign Exchange Management Act, it said in a statement. The company's local unit remitted money to three foreign-based entities with ties to Xiaomi, falsely claiming they were for royalty payments, said the Enforcement Directorate.
"Xiaomi India procures the completely manufactured mobile sets and other products from the manufacturers in India," the agency said in its statement. "The company also provided misleading information to the banks while remitting the money abroad."
India has taken a hard line against Chinese companies operating within the country ever since troops from the two countries clashed in 2020. India blacklisted more than 200 mobile applications from Chinese providers, including shopping services from Alibaba Group Holding Ltd., the TikTok short video hit from ByteDance Ltd. and apps used on Xiaomi's phones.
