Law Enforcement Agency Of India Froze Xiaomi’s $682 Million Bank Assets

According to Indian media reports on Sep 30th, an Indian appellate authority has confirmed a seizure order against Chinese smartphone producer Xiaomi Corp, froze $682 million of its bank assets.

 The Enforcement Directorate, India’s federal financial crime fighting agency, reportedly found in an investigation this April that Xiaomi made illegal remittances to foreign entities through royalty payment and decided to seize its $682 million bank assets.

 The Enforcement Directorate said the company transferred this amount aboard in guise of royalty and such practice violated India’s foreign exchange laws. The agency referred to this decision as the largest amount of seizure order confirmed by the Indian authority. Xiaomi denied the charges of the agency and said it complied with local laws. The company believed its royalty payments and statements to the bank were legitimate and truthful, saying it was committed to cooperating with Indian government in clarifying any so-called misunderstandings.

 Xiaomi and Samsung accounted for a share of 18% respectively in the Indian smartphone market, the world’s second largest after Communist China. Since 2020, New Delhi has banned more than 300 CCP background apps including TikTok and tightened rules for the investment of Chinese companies for security concerns.