Financial Crime Eradication Agency India confiscate bank account assets belonging to Xiaomi Technology India Private Limited.
You see, the Indian authorities found illegal transfers of funds worth US $ 725 million or equivalent to Rp. 10.5 trillion (exchange rate of Rp. 14,486 per US dollar) to three foreign entities under the guise of paying royalties.
Reporting from Reuters on Saturday (30/4), the Indian law enforcement investigation team admitted that it had long investigated the business activities of the Chinese technology company for alleged violations of India’s foreign exchange laws.
“An enormous amount in the name of royalties was remitted under orders from their Chinese parent company,” the authority said in a statement.
Xiaomi India did not immediately respond to a request for comment, but has previously stated that the company is cooperating with the authorities in the investigation process so that all required information is available.
In December, police raided Xiaomi’s India offices in a separate investigation into alleged income tax evasion. Apart from Xiaomi, several other Chinese smartphone production companies were also raided.
As part of the investigation process, Xiaomi Global Vice President Manu Kumar Jain was summoned for questioning.
An anonymous source with direct knowledge of the investigation said Jain appeared before investigators in early April.