{"id":46438,"date":"2022-05-02T02:03:17","date_gmt":"2022-05-02T02:03:17","guid":{"rendered":"http:\/\/9755176a-5e65-4373-a659-5c74b0191edc"},"modified":"2022-05-02T02:03:17","modified_gmt":"2022-05-02T02:03:17","slug":"directorate-of-enforcement-seizes-725-million-from-xiaomi-india","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/directorate-of-enforcement-seizes-725-million-from-xiaomi-india\/","title":{"rendered":"Directorate of Enforcement seizes $725 million from Xiaomi India"},"content":{"rendered":"<figure class=\"image image-original shortcode-image\"><span class=\"img aspect-set \"><img decoding=\"async\" src=\"https:\/\/www.zdnet.com\/a\/img\/resize\/0ca5e89b697c349ada7763d7fbf2407592c30200\/2021\/03\/15\/b9fd4e62-0ec1-4009-a481-d841e3fff1f9\/xiaomi.png?fit=bounds&amp;format=pjpg&amp;auto=webp\" class alt=\"xiaomi.png\"><\/span><figcaption><span class=\"caption\"><\/span><span class=\"credit\"> Image: Xiaomi <\/span><\/figcaption><\/figure>\n<p>India&#8217;s anti-money laundering agency, the Directorate of Enforcement (ED), has seized assets worth \u20b95551.27 crore (around $725 million) from Xiaomi India after it found the company had broken foreign exchange laws. <\/p>\n<p>In 2014, the company began operations in India and is alleged to have commenced the illegal activity in 2015. The ED claimed that Xiaomi India remitted foreign currency to three off-shore entities under the guise of royalties, with one of those including a company within the Xiaomi group, whilst the others were US-based. <\/p>\n<p>Further, the ED stated that the payments were made &#8220;on the instructions of their Chinese parent group entities&#8221;.<\/p>\n<p>Xiaomi India responded <a href=\"https:\/\/twitter.com\/XiaomiIndia\/status\/1520420788418998273?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1520420788418998273%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.engadget.com%2Findia-seizes-725-million-xiaomi-assets-173152529.html\" target=\"_blank\" rel=\"noopener noreferrer\" data-component=\"externalLink\">via Twitter<\/a>, claiming that their financial processes are compliant with Indian laws and regulations.<\/p>\n<p>&#8220;We believe our royalty payments and statements to the bank are all legit and truthful,&#8221; said the company in its response. <\/p>\n<p>&#8220;These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments.&#8221;&nbsp;<\/p>\n<p>Xiaomi India did, however, commit &#8220;to working closely with government authorities to clarify any misunderstandings&#8221;.<\/p>\n<p>After experiencing 83% year-on-year growth during the 2021 second quarter, parent-company Xiaomi achieved 17% market share for smartphones, surpassing Apple, and eventually Samsung, to briefly take the number one spot in the global smartphone market, according to <a href=\"https:\/\/www.counterpointresearch.com\/xiaomi-becomes-1-smartphone-brand-globally-first-time-ever\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" data-component=\"externalLink\">Counterpoint Research<\/a>.<\/p>\n<h3>RELATED COVERAGE<\/h3>\n<p> READ MORE <a href=\"https:\/\/www.zdnet.com\/home-and-office\/networking\/directorate-of-enforcement-seizes-725-million-from-xiaomi-india\/#ftag=RSSbaffb68\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The company responded by claiming its actions were all &#8216;legit and truthful&#8217;.<br \/>\nREAD MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[62],"tags":[],"class_list":["post-46438","post","type-post","status-publish","format-standard","hentry","category-zdnet-security"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Directorate of Enforcement seizes $725 million from Xiaomi India 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub 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