Xiaomi operates in many countries of the world, including India. It seems that a setback happened last Saturday, as the company’s Indian subsidiary found that their bank accounts were blocked.

725 million dollars withheld

The Government of India announced that they are implementing an embargo. 55,510 crore rupees (approximately $725 million) Due to irregularities in the company’s foreign exchange transfer. Officials say the company has stalled as it has been reported to send money abroad to other companies, justifying payments such as royalties and royalties.

It is suspected that these operations were ordered by the parent company for its own benefit. In December of last year, Xiaomi was also investigated in a separate case in India for tax evasion.

Xiaomi made a statement in which it explained the following:

pic.twitter.com/QPfHboEP8X

— Xiaomi India (@XiaomiIndia) April 30, 2022

As an India-affiliated brand, all of our operations strictly comply with local laws and regulations.

We carefully studied the order of government officials. We believe our royalty payments and bank statements are legitimate and accurate. These royalties made by Xiaomi India were for licensed technologies and IPs used in our Indian version products. It is a legitimate business deal for Xiaomi India to make such royalties. However, we are committed to working closely with government officials to clear up any misunderstandings.

The company did not provide further details on the current situation, but some attribute this blocking to the current situation. Tensions between Beijing and New DelhiXiaomi even has factories as it is one of the manufacturers with the largest mobile device and television business in the entire country.

More info | Reuters