# Xiaomi’s assets worth $725 million have been seized in India

URL: https://technosports.co.in/xiaomis-assets-worth-725-million-have-been-seized-in-india/  
Published: 2022-05-03  
Updated: 2022-05-03  
Author: Raunak Saha

[Xiaomi](https://technosports.co.in/?s=Xiaomi) India is in some hot water. The Indian subsidiary of the China-based company had nearly $725 million worth of its assets seized by the Indian Government’s Enforcement Directorate over the weekend. The organization has stated that the Indian division of the company has remitted nearly 55.5 billion INR to three foreign-based entities in breach of foreign exchange rules and regulations.

The department mentioned that huge amounts of royalties were remitted that were given to other parties in the form of gits by Xiaomi Technology India Private Limited on the instructions of their Chinese parent company.

> ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company.
>
> — ED (@dir_ed) [April 30, 2022](https://twitter.com/dir_ed/status/1520334910677917696?ref_src=twsrc%5Etfw)

It has been done “for the ultimate benefit of the Xiaomi Group” in the breach of Rule 4 of the Foreign Exchange Management Act of 1999. The rule specifies that “no person residing in India shall transfer any foreign exchange to any person situated outside India.”

## Xiaomi India releases statement:

The Indian subsidiary responded by stating that all royalty payments and statements to the bank are legit and truthful. The royalty payments, mentioned by the state agency were for licensed technologies and intellectual property that were used in the Indian variants of Xiaomi products. It is also “committed to working closely with government authorities to clarify any misunderstandings.”

> [pic.twitter.com/QPfHboEP8X](https://t.co/QPfHboEP8X)
>
> — Xiaomi India (@XiaomiIndia) [April 30, 2022](https://twitter.com/XiaomiIndia/status/1520420788418998273?ref_src=twsrc%5Etfw)
*Xiaomi India posted the above tweet*

The investigation is still ongoing so the outcome of this situation is yet to be seen.

Source: [Reuters](https://www.reuters.com/world/india/india-seizes-725-mln-xiaomi-funds-foreign-exchange-case-2022-04-30/)

**Also read:**

- [Sony Bravia X75k TV series launched in India with X1 4K processor & Dolby Audio](https://technosports.co.in/2022/05/02/sony-bravia-x75k-tv-series-launched/)
- [Acer’s Spring Global Launch happening on May 18th](https://technosports.co.in/2022/05/02/acers-spring-global-launch-acer/)
- [EXCLUSIVE INTERVIEW: Ankit Khurana, Managing Director of ValueScale Technologies tells us about their services & future plans and gives his take on e-commerce &…](https://technosports.co.in/2022/05/02/ankit-valuescale-technologies/)