ED issues show cause notice to Xiaomi for Rs 5,551 crore worth alleged illegal remittances
The smartphone maker is accused of making illegal remittance to foreign entities.
The smartphone maker is accused of making illegal remittance to foreign entities.
The smartphone maker is accused of making illegal remittance to foreign entities.
India's financial-crime agency on Friday issued a show-cause notice to Xiaomi's India unit, its officials and three banks in connection with a probe that found the smartphone maker had made illegal remittances to foreign entities.
The Enforcement Directorate issued the notice under the Foreign Exchange Management Act for alleged illegal remittances made by Xiaomi to the tune of 55.51 billion Indian rupees (Rs 5,551 core/$673.2 million).
Xiaomi did not immediately respond to a Reuters' request for comment.
In April, an Indian court rejected the Chinese smartphone maker's petition against the seizure of the 55.51 billion rupees.
Xiaomi's assets in India were frozen last year by the Enforcement Directorate, which alleged the company had made illegal remittances to foreign entities by passing them off as royalty payments.
The company has previously said its royalty payments were all legitimate and that it will "continue to use all means to protect the reputation and interests".