India’s anti-money laundering company stated on Saturday it has seized belongings price about $725 million from Xiaomi India for breaching the nation’s overseas change legal guidelines in a serious blow to the Chinese language cellphone maker that instructions the Indian smartphone market.
The Indian Enforcement Directorate stated it had seized financial institution accounts of Xiaomi India after discovering that the corporate had remitted $725 million to 3 foreign-based entities “within the guise of royalty” funds.
“Such large quantities within the title of royalties had been remitted on the directions of their Chinese language dad or mum group entities,” it stated. The quantity remitted to “different two US-based unrelated entities” had been additionally for the “final advantage of the Xiaomi group entities,” the company added.
The directorate, which has been investigating Xiaomi for a number of months, stated the Chinese language agency has “offered deceptive data to the banks whereas remitting the cash overseas.”
Xiaomi, which has but to remark, commanded 23% of India’s smartphone market share within the quarter that led to March this yr, in keeping with market analysis agency Counterpoint.
The corporate has taken successful in its reputation lately following India’s ban on Chinese language apps over nationwide safety issues. For optics measures, Xiaomi rebranded a number of of its retailers in India final yr with “Made in India” banners two years in the past to distance its Chinese language model.