Xiaomi could be fined $2bn in India for illegal money transfers

By: Elena Shcherban | 11.06.2023, 13:50

The Enforcement Directorate in India recently issued an order charging Xiaomi Technology India Ltd, the company's CFO and three foreign banks - Citi bank, HSBC Bank and Deutsche Bank AG.

What Happened?

The Indian unit of Xiaomi is accused of violating the Foreign Exchange Management Act to the tune of $670 million. The Federal Investigation Agency had earlier seized this money in Xiaomi's accounts.

According to the investigation, the amount was transferred from India by Xiaomi India in an unauthorised manner under the guise of royalties and banks allowed transfers from abroad without entering into any technical cooperation agreement.

Xioami India is now facing a hefty fine of around $2 billion.

Source: @dir_ed

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