The company mentioned Xiaomi India, performing at the directions of its dad or mum corporate, “had remitted foreign currency echange identical to [55.5 billion rupees, $726 million] to 3 international based totally entities which come with one Xiaomi team entity within the guise of royalty.”
Xiaomi began its operations in India in 2014 and began remitting cash a yr later, the company added. The Indian government have now seized an identical quantity of finances “mendacity within the financial institution accounts of the corporate.”
“Xiaomi India procures the totally manufactured cell units and different merchandise from the producers in India,” the Enforcement Directorate mentioned. “Xiaomi India has now not availed any carrier from the 3 international based totally entities to whom such quantities were transferred,” the company added.
It additionally accused the corporate of offering “deceptive data to the banks whilst remitting the cash out of the country.”
The bills had been made for “in-licensed applied sciences and IPs utilized in our India model merchandise.”
