CyberNews Briefs

Directorate of Enforcement seizes $725 million from Xiaomi India

The Directorate of Enforcement (ED), India’s anti-money laundering agency, has reportedly seized roughly $725 million in assets from Xiaomi India after the ED found that the company broke foreign exchange laws. According to the ED, the company began operations in India in 2014 and commenced illegal activity in 2015. The directorate claimed that the comapny remitted foreign currency to three different off-shore entities under the guise of royalties. One of these includes a company within the Xiaomi group, but the others were US-based.

In addition, the ED found that payments were made under instructions from Chinese parent group entities. Xiaomi has responded to the claims, stating that their financial actions were compliant with Indian laws and regulations. The company stated that the payments were made for in-licenses technologies and IPs used in Indian products. Xiaomi stated that it will work closely with Indian government authorities to clarify the misunderstanding.

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