homebusiness Newscompanies NewsXiaomi got over half a billion dollar worth of assets in India seized but the shares are rallying — here's why

Xiaomi got over half a billion dollar worth of assets in India seized but the shares are rallying — here's why

Xiaomi in a statement said the company had studied the order from the government authorities carefully and it believed that its royalty payments and statements to the bank are all truthful.

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By CNBCTV18.com May 2, 2022 9:47:56 AM IST (Updated)

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Xiaomi got over half a billion dollar worth of assets in India seized but the shares are rallying — here's why
Xiaomi Technology India on Saturday night issued a statement on its Twitter account saying all its operations are firmly compliant with local laws and regulations.

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On Saturday, the Enforcement Directorate (ED) had seized Rs 5,551.27 crore of Xiaomi Technology India Private under the provisions of the Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company.
"As a brand committed to India, all our operations are firmly compliant with local laws and regulations," the statement said.
"We have studied the order from government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with the government authorities to clarify any misunderstandings," the statement added.
According to ED, the amount of Rs 5,551.27 crore was lying in the bank accounts of the company. Xiaomi India is a wholly-owned subsidiary of the China-based Xiaomi Group.
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