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Xiaomi to protect its business interests after ED freezes assets

Xiaomi to protect its business interests after ED freezes assets

The Chinese smart device firm said in a statement on Sunday that over 84% of the 55.51 billion Indian rupees seized by the Enforcement Directorate earlier this year was royalty payments made to US chip company Qualcomm Group.

With a share of 18% each, Xiaomi and Samsung jointly lead the smartphone market in India, the second largest in the world after China, according to data from Counterpoint Research. With a share of 18% each, Xiaomi and Samsung jointly lead the smartphone market in India, the second largest in the world after China, according to data from Counterpoint Research.

Chinese smartphone maker Xiaomi Corp said on Sunday it was “disappointed” with an Indian order that froze $682 million of its assets and would continue to protect the interests of her.

An Indian appellate authority on Friday upheld an April order by India’s federal anti-financial crime agency, the Enforcement Directorate, to seize 55.51 billion rupees, saying an investigation found Xiaomi had made illegal transfers to entities foreign currency passing them off as royalty payments.

The Chinese smart device firm said in a statement on Sunday that over 84% of the 55.51 billion Indian rupees seized by the Enforcement Directorate earlier this year was royalty payments made to US chip company Qualcomm Group.

The company said that Xiaomi India is a subsidiary and one of the companies of the Xiaomi Group, which has entered into a legal agreement with Qualcomm to license IP for the production of smartphones.

Both Xiaomi and Qualcomm believe it is a legitimate commercial arrangement for Xiaomi India to pay Qualcomm royalties, the statement said.

With a share of 18% each, Xiaomi and Samsung jointly lead the smartphone market in India, the second largest in the world after China, according to data from Counterpoint Research.

Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020.

India has cited security concerns in banning more than 300 Chinese apps since then, including popular ones like TikTok, and has also tightened rules on Chinese companies investing in India.

Published on: Oct 03, 2022, 7:24 AM IST
Posted by: Mehak Agarwal, Oct 03, 2022, 7:20 AM IST
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