xiaomi: Karnataka HC revokes the blockade of $ 725 million of Xiaomi assets in case: Sources

The Karnataka High Court has suspended Direction of applicationthe decision to seize $ 725 million from China’s local bank accounts Xiaomi Corp for suspected violations of foreign exchange lawstwo sources said Friday.

The enforcement directorate seized the bank’s assets last week Xiaomi Technology India Private Limited, claiming it discovered that the company illegally transferred funds to three overseas-based entities, including a Xiaomi group entity, “in the form of” payments.

Xiaomi had denied any wrongdoing, stating that his “payments and statements to the bank are all legitimate and truthful”. She subsequently appealed the Indian Financial Crime Agency’s decision to the High Court.

On Thursday, after listening to Xiaomi’s lawyers, a judge suspended the decision of the direction of the application, the two sources said, who refused to be identified as not authorized to speak to the media.

Xiaomi and the Enforcement Directorate did not immediately respond to requests for comment. The written court order is not yet public.

Relief was granted on the condition that Xiaomi informs Indian authorities of funds transfers such as royalty payments, one of the sources said.

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The case will be heard on May 12, according to the Indian court website.

Xiaomi was the leading smartphone seller in India in 2021, with a market share of 24%, according to Counterpoint Research.

Reuters previously reported that the former Indian chief of Xiaomi, Manu Kumar Jainsummoned and questioned as part of management investigations.

Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India has cited security concerns in banning more than 300 Chinese apps since, including popular ones like TikTok, and it also tightened investment rules for Chinese companies in India.

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