India seized $725 million from the local bank accounts of Xiaomi after an investigation revealed the Chinese giant illegally sent money abroad under the guise of royalty payments, authorities said on Saturday.
The indian financial crime investigation agency began investigating the company in February, saying it seized money from the company’s local branch after discovering it had made shipments to three foreign-based entities.
“These huge amounts in the name of royalties were remitted on the instructions of the group’s Chinese parent entities,” the enforcement directorate said in a statement.
Xiaomi did not immediately respond to an AFP request for comment.
The authorities searched the company’s office in the India in December following another investigation for alleged income tax evasion.
The relationships between China and the India They are in low hours since the deadly clash on the Himalayan border between soldiers from both countries in 2020.
As a consequence, the Indian Home Ministry has banned hundreds of mobile apps of Chinese origin, including the popular social media platform Tiktok.
The government claimed that the apps endangered India’s national sovereignty.
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