China-based technology giant Xiaomi has been fined $ 725 million by the Indian government for breaking the law.
Xiaomi, which is growing rapidly among technology companies, performs very well both in China and outside the Chinese market with its smartphone sales. India, one of the company’s largest markets, is also one of the important sources of income.
However, Xiaomi was fined quite a lot in India, where it generates most of its revenues. The country’s anti-money laundering agency has imposed a $725 million fine on the grounds that the company broke the law.
725 million fine to Xiaomi
According to the news of Reuters, the Director of the Executive Board of India said in a statement; He announced that Xiaomi had detected illegal transfers while trying to transfer some transfers as royalty payments. It was stated that the money in question was transferred to three foreign companies under the Xiaomi flag.
The Executive Directorate, which conducted research on the subject, stated that the Chinese company found a move that would benefit its own benefit in this way, while “Such large amounts in the name of copyright were transferred on the instructions of the Chinese main group organizations.” According to the country’s laws, these remittances were described as ‘money laundering operations’.
In addition, the Enforcement Directorate in India states that Xiaomi is under money laundering; He also accused him of providing misleading information to banks while sending the money abroad. However, Xiaomi said in a statement on Twitter that the payments are legitimate. ” These royalties made by Xiaomi India were for the licensed technologies and IPs used in our Indian version products,” the company said in its post on the subject. “We are committed to working closely with government officials to clarify any misunderstandings, ” he said.