Posted in: 01/05/2022 – 05:20
New Delhi (AFP) – Indian authorities announced Saturday that they have seized $725 million from the local bank accounts of Xiaomi, after an investigation found that the Chinese smartphone giant had transferred funds abroad under the guise of equity payments.
The Criminal Investigation Agency of India began looking into the case in February, and announced that it had seized the funds of the local branch of the company after investigations concluded that it had made money transfers to three entities outside the country.
“Such huge sums of royalties (equity payments) were paid at the direction of entities affiliated with the Chinese group,” the agency said in a statement.
Xiaomi’s Indian subsidiary denied the allegations on Saturday, stressing that these operations are “fully compliant with local laws and regulations.” “We are committed to working closely with government authorities to clear up any misunderstandings,” Xiaomi India wrote on Twitter.
Relations between New Delhi and Beijing are at their lowest level since clashes in the Himalayas between the two countries’ forces in 2020.
After that, the Indian Ministry of Home Affairs banned hundreds of Chinese-sourced apps, including the TikTok platform.
The government said the aim of blocking these apps is to protect the country from any threats to its sovereignty.
Anti-Chinese attitudes have increased in India since the military clashes in 2020, and calls have been made for consumers to boycott Chinese goods.
China is India’s main economic partner, and media reports indicate that the volume of trade exchange between the two countries exceeded $125 billion last year.
© 2022 AFP