Xiaomi News & Updates

[Navjot Singh]

ED Seizes Rs 5,551 Crore From Xiaomi India for FEMA Violation

The seizure was made in connection with a probe that was launched by the federal agency against the company into alleged

thewire.in

It said while Xiaomi India procures completely manufactured mobile sets and other products from the manufacturers in India it has not availed any service from these three foreign based entities to whom such amounts have been transferred.

“Under the cover of various unrelated documentary facade created amongst the group entities, the company remitted this amount in guise of royalty abroad which constitute violation of section 4 of the FEMA,” it said.

What kind of dumb logic is that? Which Indian manufacturer are they talking about?

 

[Jonas]

Then we're left to wonder why brands don't manufacture or assemble gadgets in India.

 

[mikrotik]

What about R&D? Will they not pay loyalty to use designs?

 

[pillaicha]

What kind of dumb logic is that?

What part of the article is illogical? They were trying to channel out funds in the name of royalty which isn't allowed under the FEMA rules. You can't repatriate earnings in India unless it's to pay for goods and services, also for which you need to have chartered accountants verify them and take prior permission of the RBI.

 

[mikrotik]

So they design the phone in India?

 

[Jonas]

I thought they just assemble it here.

 

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[Navjot Singh]

Govt thinks Some fictional Indian companies manufacture the entire phone for them so any money sent abroad is illegal.

 

[Nishant]

Source

 

[Sushubh]

Chalo lawyers ki party.

 

[Navjot Singh]

Court lifts block on ₹5,500 crore of Xiaomi's assets in royalty case: Report

The Enforcement Directorate last week seized the bank assets of Xiaomi Technology India Private Limited

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