India confiscated $725 million in Indian bank accounts of Chinese smartphone maker Xiaomi. The state accuses the company of illegally transferring funds abroad under the guise of royalty payments. This was stated by the Indian authorities on Saturday.
India’s Financial Crimes Investigation Agency launched an investigation in February after discovering that Xiaomi’s Indian subsidiary had transferred funds to three overseas entities.
The agency said in a press statement that huge sums were transferred under the guise of royalty payments at the request of the Chinese parent company. 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 by tax evasion allegations.
Relations between New Delhi and Beijing have reached an all-time low since bloody clashes erupted between soldiers from the two countries at the disputed Himalayan border in 2020.
India’s home minister later banned hundreds of Chinese apps, including those of the popular TikTok platform.
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