MUMBAI, Oct 3 (Portal) – Chinese smartphone maker Xiaomi Corp (1810.HK) said on Sunday it was “disappointed” by an Indian order freezing $682 million of its assets and would continue to protect its interests.
An Indian Appellate Body on Friday upheld an April order by India’s federal financial crime agency, the Enforcement Directorate, to seize Rs 55.51 billion, saying an investigation found Xiaomi had made illegal remittances to overseas companies by it spent them as royalties.
The Chinese smart device company said in a statement on Sunday that over 84% of the 55.51 billion Indian rupees seized by enforcement earlier this year was the license fee to US chipset company Qualcomm Group (QCOM.O). .
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“We will continue to use all means to protect the reputation and interests of the company and our stakeholders,” it said.
The company said that Xiaomi India is an affiliated company and one of the companies in the Xiaomi Group that has entered into a legal agreement with Qualcomm to license intellectual property for the manufacture of smartphones.
Both Xiaomi and Qualcomm believe it is a legitimate commercial arrangement for Xiaomi India to pay Qualcomm royalties, the statement said.
With a share of 18% each, Xiaomi and Samsung together lead the smartphone market in India, which is the second largest in the world after China, according to data from Counterpoint Research.
Many Chinese companies have struggled to do business in India due to political tensions following a border dispute in 2020.
India has cited security concerns as it has since banned more than 300 Chinese apps, including popular ones like TikTok, and also tightened rules on Chinese companies investing in India.
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Reporting by Rupam Jain; Edited by Sandra Painter
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