The Indian Law Enforcement Bureau officially accused Chinese smartphone manufacturer Xiaomi, saying that Xiaomi transferred funds to foreign entities illegally and violated the Indian Foreign Exchange Management Law.
According to Reuters, the Indian Law Enforcement Bureau released a document last Friday (June 9) stating that because Xiaomi was suspected of violating the country's Foreign Exchange Management Law (FEMA) and illegally transferred 55.51 billion rupees to foreign entities (The funds of about 904 million yuan), the bureau has issued a formal notice to Xiaomi Technology India Indian Personal Co., Ltd., Xiaomi Indian Branch, some executives and Citi, and Deutsche Bank.
The Indian Law Enforcement Bureau accused of in April last year that Xiaomi and its Indian subsidiaries have misleaded the German Bank in the name of "franchise fees" since 2015 and illegally remitted foreign entities.Based on this, India officially seized 55.513 billion rupee funds at the bank account of Xiaomi Indian subsidiary.At that time, Xiaomi India stated that the company's payment of such taxes was a legitimate business behavior and appealed to the official decision.
Xiaomi India explained that in the cost of paying to foreign entities, more than 84%of the part is the franchise fee paid to the United States Qualcomm Group to use the relevant standards of the relevant standards (SEP SEP (SEP (SEP (SEP (SEP) And Xiaomi Indian version of intellectual property rights."Without these technologies, our smartphones cannot run in India." However, Indian officials refused to thaw the funds last October.
The court documents show that Xiaomi's frozen assets are distributed in the accounts of different banks, including German Bank, Citibank and HSBC Bank.
