The Executive Directorate of India announced that it seized $ 725 million worth of money from tech giant Xiaomi for violating foreign exchange laws. The Executive Authority, in a statement on the subject, stated that they did this because Xiaomi transferred 725 million dollars to three foreign organizations under the guise of copyright. The technology company made a statement on the subject. Let’s take a look at the details of the news together.
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Xiaomi provided misleading information when sending the money
The Executive Directorate of India announced that Xiaomi provided misleading information to banks when sending money to US-based foreign companies. Since the beginning of this year, the Directorate has invited many Chinese technology companies, including the Former President of Xiaomi India, to make inquiries about the tax.
Xiaomi said in a statement on the subject:
“We believe the royalties are legal as we do it for the licensed technologies and IPs used in our India version products.”
Xiaomi started labeling some of its apps as “Made in India” after India banned Chinese apps due to national security concerns. Because two years ago, due to the border conflicts, India banned more than 100 Chinese applications in the country. Analysts said that the technology giant has started to distance itself from the main company with this application.
Xiaomi also made the following statement regarding the transfer of $ 725 million:
“Such large sums in the name of copyright have been remitted on instructions from Chinese parent group entities.”
In addition, the company stated that the money transferred to two US-based organizations is for the final decision of the Xiaomi group organizations.
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