Xiaomi faces massive problems in India. The country’s anti-money laundering agency has confiscated the equivalent of almost 700 million euros from the Chinese manufacturer. Xiaomi India is said to have violated foreign exchange laws. Xiaomi has already made a statement.

xiaomi

Xiaomi: India confiscates 700 million euros

Xiaomi is the market leader in India with a market share of over 20 percent. Business is actually going really well, but now things have changed India’s anti-money laundering agency turned on. Almost 700 million euros were collected from the local subsidiary of the Chinese smartphone manufacturer because Xiaomi India is said to have violated the country’s foreign exchange laws.

Specifically, Xiaomi India is accused of having paid alleged “fees” for the exploitation of intellectual property to three foreign companies. However, according to the Indian authorities, no services used at all have been. Instead, only Xiaomi’s Chinese parent company benefited from the payments, while misleading information was given to banks.

Xiaomi has already commented on the subject and has assured that everything is going right. The “fees” paid since 2015 have been paid for intellectual property and licensed technologies used in smartphones by Xiaomi India. But you want clear up “any misunderstanding”. and work with the authorities (source: hot online).

From Xiaomi we last looked at the Xiaomi 12 Pro:

India: Xiaomi again in the sights of the authorities

It’s not the first time that Xiaomi has encountered problems with authorities in India. As early as December 2021, the country’s tax authorities had Searched properties of Xiaomi and Oppo. This involved allegations of tax evasion. Factories of contract manufacturers for Xiaomi were also scrutinized.