Thursday, June 13, 2024

ED Seizes ₹ 5,500 crore from Xiaomi over Forex Violations

Recently, Chinese mobile manufacturing company Xiaomi, violated the Indian foreign exchange law. As a result of which Central probe agency Enforcement Directorate (ED) seized funds worth over ₹ 5,500 crore from the company.

However, Xiaomi has claimed that all of its operations “are firmly compliant” with local rules and regulations.

Just after the news broke, Trinamool MP Mahua Moitra confronted the centre that Xiaomi was permissible to contribute ₹ 10 crore to the “opaque” PM CARES fund. The Xiaomi company made some “illegal remittances” in February this year, regarding which the probe agency commenced an investigation.

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In the year 2014, Xiaomi started its operations and then soon in 2015, it started remitting the money. The probe agency said that the company has already remitted foreign currency worth ₹ 5,551.27 crore to three foreign based entities, one of which is Xiaomi group entity, in the guise of royalty. Also, it has been reported that the money remitted to other two entities was also for the benefit of Xiaomi group entities.

ED Seizes ₹ 5,500 crore from Xiaomi over Forex Violations 1

As per probe agency, Xiaomi India acquires fully manufactured mobile sets and various other products from the Indian manufactures, and it has not got any service from those three foreign based entities to whom this huge amount was remitted.

Xiaomi says that all of its royalty payments are “legit and truthful”   

Chinese company Xiaomi in a statement said that it has carefully studied the orders from government. And the company believes that its royalty payments and statements to the bank are all legit and truthful.

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The company also said that all the royalty payments that Xiaomi India has made were for the in licensed technologies and Ips used in their Indian version products.

Xiaomi Technology India Private Limited is also a trader and distributor of mobile phones in India under the brand name of MI.

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Mansi Gupta
Mansi Gupta
"Fair and virtuous, Royal and gracious", this is how she represent herself. Hailing from the city of temples Jammu, she completed her studies in Himachal Pradesh. Being a student of journalism and mass communication, she was always passionate about writing and speaking. She has also worked as a news anchor and reporter for digital platforms. Currently, she is working as a full-time content writer. She strongly believes in the 'power of writing' as those little words make a huge difference.

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