Indian court lifts $725m block of Xiaomi assets in royalty case: sources - New Style Motorsport

Xiaomi’s logo is seen inside the company’s office in Bengaluru, India, January 18, 2018. REUTERS/Abhishek N. Chinnappa

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NEW DELHI, May 6 (Reuters) – An Indian court has stayed a federal law enforcement agency’s decision to seize $725 million from local bank accounts of China’s Xiaomi Corp (1810.HK) for alleged violations of laws. exchange rates, two sources told Reuters. on Friday.

The Enforcement Directorate last week seized the banking assets of Xiaomi Technology India Private Limited, saying it had discovered the company illegally remitted funds to three overseas-based entities, including a Xiaomi group entity, “under the guise of payments.” royalty”. read more

Xiaomi had denied any wrongdoing, saying its “royalty payments and statements to the bank are legitimate and truthful.” She later filed a challenge against the Indian Financial Crimes Agency’s decision in the High Court of the southern state of Karnataka.

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On Thursday, after hearing from Xiaomi’s lawyers, a judge suspended the Execution Directorate’s decision, said the two sources, who declined to be identified because they were not authorized to speak to the media.

Xiaomi and the Compliance Directorate did not immediately respond to requests for comment. The written court order is not yet public.

The relief was granted on the condition that Xiaomi will inform the Indian authorities about transfers of funds, such as royalty payments, one of the sources said.

The next case will be heard on May 12, according to the Indian court’s website.

Xiaomi was India’s top smartphone vendor in 2021, with a 24% market share, according to Counterpoint Research.

Reuters previously reported that Xiaomi’s former boss in India, Manu Kumar Jain, was summoned and questioned as part of the management’s investigation. read more

Many Chinese companies have struggled to do business in India due to political tensions following a border standoff in 2020. India cited security concerns by banning more than 300 Chinese apps since then, including popular ones like TikTok, and also tightened rules. for Chinese companies that invest. In India.

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Additional reporting by Abhirup Roy; Edited by Lincoln Fest.

Our standards: the Thomson Reuters Trust Principles.

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