India has seized USD 725 million in Indian bank accounts of the Chinese smartphone manufacturer Xiaomi. The country accuses the company of illegally transferring money abroad under the guise of royalty payments. This was reported by the Indian authorities on Saturday.
The Indian financial crime investigation agency launched an investigation in February after it was discovered that the Indian branch of Xiaomi had transferred money to three entities abroad.
“Huge sums have been transferred under the guise of royalty payments at the request of the Chinese parent company,” the agency said in a press release. Xiaomi has not yet responded to the message.
As early as December, Xiaomi homes in India, as well as other Chinese smartphone makers, including Huawei, were raided over allegations of tax evasion.
Relations between New Delhi and Beijing are at an all-time low since deadly clashes took place between soldiers from both countries at the disputed Himalayan border in 2020.
The Indian interior minister subsequently banned hundreds of Chinese apps, including those of the popular platform TikTok.
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