India seizes $ 725 million from Xiaom’s Chinese accounts

The Indian Financial Crimes Investigation Agency, which launched an investigation in February, said it had confiscated money from local bank accounts after finding that Xiaom’s Indian branch had transferred funds to three overseas entities.

“Huge sums in the name of” royalties ” [compensações financeiras] was paid at the request of Chinese-controlled entities, “the agency said in a statement on Saturday.

Xiaom’s Indian subsidiary denied the allegations and asserted that the financing transactions were “strictly in accordance with local laws and regulations.”

“We are committed to working closely with the authorities to clear up any misunderstandings,” Xiaomi India wrote on Twitter.

Law enforcement officials visited Xiaom’s headquarters in India in December as part of a separate investigation into tax evasion allegations against other Chinese technology companies, including Huawei.

Xiaomi announced a net profit of 19.3 billion yuan (€ 2.8 billion) in 2021 in March and pointed out that most of its foreign business comes from the Indian and European markets.

India-China relations have been strained since June 2020, when clashes killed 20 Indians and at least four Chinese soldiers in the Ladakh region along the controversial border between Arunachal Pradesh and Tibet.

Hundreds of Chinese mobile apps, including the popular Tiktok platform, have been banned by India’s Interior Ministry, citing India’s need to prevent threats to the country’s sovereignty.

On April 7, India claimed to have been the victim of a cyber attack on the electricity distribution network by Chinese “hackers” near Ladakh.

Chinese Foreign Ministry spokesman Zhao Lijan denied that China had launched these attacks.

VQ (MC / AXYG) // VQ

Lusa / Loppu

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