India Seizes $726 Million From Xiaomi Unit on Forex Breach
The company’s royalty payments and statements to the bank are “all legit and truthful,” a Xiaomi spokesperson said.
(Bloomberg) -- India’s anti-money laundering agency said it seized 55.51 billion rupees ($726 million) from a local unit of Chinese mobile company Xiaomi Corp. for breaching the country’s foreign-exchange laws.
The money was seized from the bank accounts of Xiaomi Technology India under the provisions of the Foreign Exchange Management Act, the Enforcement Directorate said in a Twitter post on Saturday.
The company’s royalty payments and statements to the bank are “all legit and truthful,” a Xiaomi spokesperson said in a statement provided to Bloomberg News. “We are committed to working closely with government authorities to clarify any misunderstandings.”
Xiaomi is the largest smartphone company in India by shipment volumes, controlling more than a fifth of the market.
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