The Indian market is one of the most important areas of operation of the Chinese manufacturer Xiaomi in terms of selling smartphones. Currently, Xiaomi is the largest smartphone retailer in this country. In the near future, however, the company's operations in India may be a bit more difficult. As the latest press information indicates, a financial penalty has been imposed on the Indian branch of Xiaomi.
According to information appearing in the press, the Indian branch of Xiaomi was accused of illegal transfer of money in the form of royalties to three foreign entities, one of which was to fall under the Xiaomi group. Such a decision violated the Indian Foreign Exchange Management Act. For this reason, the Indian government has decided to seize 725 million of dollars from bank accounts belonging to the Indian branch of Xiaomi. The company itself has already issued a statement on the matter in which Xiaomi strongly denies that it broke the laws of India. According to the company, all fees paid were related to the technology used in its products on the Indian market. In addition, the company adds that it is ready to cooperate with the Indian government to solve the problem.