- // Update 1 (01/05/2022 11:00 am)
- Official Statement from Xiaomi
Xiaomi might have enjoyed its limelight with the launch of the flagship Xiaomi 12 Pro and Xiaomi Pad 5 in India earlier this week. But today, the Enforcement Directorate has seized over Rs 5,551 crore from Xiaomi Technology India Pvt Ltd, the Chinese phone maker’s Indian arm, for violating the Foreign Exchange Management Act (FEMA) law. Check out the complete details below:
In an official tweet today, the Enforcement Directorate confirmed that it has seized a whopping Rs 5,551 crore sum from Xiaomi’s bank accounts. This move comes after an investigation was launched into the Chinese giant’s practices back in February. The federal agency started the probe in regards to alleged illegal remittances to a foreign entity.
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.— ED (@dir_ed) April 30, 2022
Update 1 (01/05/2022 11:00 am)
Here’s a statement received by Beebom from a Xiaomi spokesperson, ” As a brand committed to India, all our operations are firmly compliant with local laws and regulations.
We have studied the order from government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with government authorities to clarify any misunderstandings.”
