Chinese smartphone maker Xiaomi Corp ( 1810.HK ) said on Sunday it was “disappointed” by an Indian order freezing its $682 million in assets and would continue to protect its interests. .
An Indian appellate authority on Friday upheld an April order by India’s federal financial crime-fighting agency, the Enforcement Directorate, to confiscate 55.51 billion rupees, saying an investigation found that Xiaomi had paid foreign entities. had sent illegal remittances as payment of royalty.
More than 84 percent of the 55.51 billion Indian rupees seized by the Enforcement Directorate earlier this year was from royalties paid to U.S. chipset company Qualcomm Group ( QCOM.O ), the Chinese smart devices firm said in a statement on Sunday. There was a payment.
“We will continue to use all means to protect the reputation and interests of the company and our stakeholders,” it said.
Xiaomi India, an affiliate and one of the Xiaomi group companies, has entered into a legal agreement with Qualcomm to license the IP for manufacturing smartphones, the company said.
Both Xiaomi and Qualcomm believe that paying Qualcomm royalties is a legitimate business arrangement for Xiaomi India, the statement said.
With an 18% share each, Xiaomi and Samsung jointly lead the smartphone market in India, the world’s second largest after China, according to data from Counterpoint Research.
Many Chinese companies are facing difficulties in doing business in India due to political tension after border clashes in 2020.
India has since cited security concerns in banning more than 300 Chinese apps, including the popular TikTok, and tightened rules for Chinese companies investing in India. is given
