Xiaomi was again investigated by the Indian authorities.
On May 1, according to Reuters, the Indian side said that Xiaomi and its subsidiaries were suspected of illegally sending money to foreign entities in violation of India's local Foreign Exchange Control Law, and had seized about 4.8 billion yuan (US$725 million) of assets belonging to Xiaomi Technology India Pvt. (hereinafter referred to as "Xiaomi India").
On May 1, Xiaomi India responded to the surging news reporter that as a brand dedicated to India, all operational activities strictly abide by local laws and regulations. "We carefully studied the orders of the authorities. We believe that the royalties and bills we pay to banks are legal and authentic. These royalties paid by Xiaomi India are used for licensed technology and intellectual property rights used in our Indian version of our products. For Xiaomi India, paying such royalties is a legitimate business practice. Of course, we will work closely with the government to clarify any misunderstandings. ”
According to the Enforcement Agency, India's Financial Crimes Fighting Agency, xiaomi india has been found to have remitted foreign currency worth 555 crore (about 4.806 billion yuan) to three overseas entities, including Xiaomi Group, in the name of paying royalties.
Xiaomi has previously been repeatedly investigated by Indian authorities. On January 5, India's Ministry of Finance said in a statement that it had issued a notice to Xiaomi India to pursue 653 million rupees (about $88 million) in taxes to the company after the investigation uncovered tax evasion. On January 27, Gao Feng, spokesman for China's Ministry of Commerce, responded that China was concerned about this and was concerned about India's investment environment.
According to New Delhi Television (NDTV), on December 21 last year, law enforcement officers from the Revenue Department of the Ministry of Finance of India inspected taxes in more than 20 places across India, and Chinese-funded mobile phone companies such as Xiaomi and OPPO were searched, which are the more well-known mobile phone brands in India.
According to the first quarter of 2022 Indian smartphone shipment report released by market research agency Canalys, Xiaomi topped the list with 8 million smartphone shipments, with a market share of 21%.
