China-based technology giant Xiaomi has been fined $ 725 million by the Indian government for breaking the law.
Growing fast among tech companies Xiaomi, shows a very good performance with smartphone sales both in China and outside the Chinese market. India, one of the company’s largest markets, is also one of the important sources of income.
However Xiaomiwas fined quite high in India, where it provides most of its income. The country’s anti-money laundering agency has imposed a $725 million fine on the grounds that the company broke the law.
725 million fine to Xiaomi
According to the news of Reuters, the Director of the Executive Board of India said in a statement; He announced that Xiaomi had detected illegal transfers while trying to transfer some transfers as royalty payments. It was stated that the money in question was transferred to three foreign companies under the Xiaomi flag.
The Executive Directorate, which conducts research on the subject, Chinese for the company’s own benefit will benefit a found it in motion “Such large sums in the name of copyright have been transferred on the instructions of the Chinese parent group entities,” it said. According to the country’s laws, these remittances were described as ‘money laundering operations’.
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In addition, in India Executive Directorate, within the scope of money laundering Xiaomi; He also accused him of providing misleading information to banks while sending the money abroad. However, Xiaomi said in a statement on Twitter that the payments are legitimate. In the company’s post on the subject, “These royalties from Xiaomi India were for the licensed technologies and IPs used in our Indian version products,” he said. “We are committed to working closely with government officials to clear up any misunderstandings.‘ he stated.
Source :
https://finance.yahoo.com/news/india-seizes-725-million-xiaomi-assets-173152529.html?guccounter=1