< br />
MOSCOW, June 11 The Indian Crime Agency, as part of its investigation, sent an official notice of indictment to the Indian division of Xiaomi, its officials and three banks due to alleged violations of currency laws, according to WION TV channel.
According to the investigation, the investigation uncovered illegal money transfers from a Chinese smartphone manufacturer to foreign organizations. The notice was issued under the Foreign Exchange Management Act and concerns remittances worth INR 55.51 billion ($673.2 million).
In addition to Xiaomi Technology India Private Limited, Xiaomi's Indian arm, the notices are directed to the company's CFO Sameer Bi Rao, former Managing Director Man Kumar Jain and Citibank, HSBC Bank and Deutsche Bank AG.
The Indian Crime Agency alleges that Xiaomi began illegally transferring money abroad in 2015, using misleading information and disguising the funds as royalties. Last year, the agency froze Xiaomi's assets in India, alleging that the company was making illegal money transfers, falsely presenting them as royalty payments to foreign entities. However, Xiaomi disputed these allegations, saying that its royalties were legitimate. In April, a court in India dismissed a lawsuit filed by a Chinese smartphone maker.
In recent years, Xiaomi has invested heavily in India, including building manufacturing facilities and launching affordable consumer-facing smartphones.
Foreign companies operating in India, especially from China, have faced increased scrutiny and challenges from regulators. Indian authorities are increasingly vigilant in enforcing financial regulations and investigating alleged violations such as tax evasion, money laundering and foreign exchange violations.