Fast growing at tech companies Xiaomi, shows a very good performance with smartphone sales both in China and outside the Chinese market. India, one of the company’s largest markets, is also one of its major sources of revenue.

However Xiaomiwas fined quite hefty in India, where it provides most of his income. The country’s anti-money laundering agency has fined $725 million for breaking the law.

725 million fine to Xiaomi

According to Reuters news, the director of India’s Board of Directors said in a statement; He announced that Xiaomi had discovered illegal transfers while trying to transfer some transfers as royalty payments. It was said that the money in question had been transferred to three foreign companies under the Xiaomi flag.

The Executive Directorate, which is investigating the subject, Chinese for the company’s own benefit will benefit a find it moving “Such large amounts in the name of copyright have been transferred on behalf of the Chinese parent group entities,” it said. Under the laws of the country, these transfers were described as ‘money laundering operations’.

In addition, in India executive directorate, in the context of money laundering Xiaomi; He also accused him of providing misleading information to banks while sending the money abroad. However, Xiaomi said in a statement on Twitter that the payments are legitimate. In the company’s post on this topic, “These royalties from Xiaomi India were for the licensed technologies and IPs used in our Indian version products,” he said. “We are committed to working closely with government officials to clear up any misunderstandings.‘ he claimed.