Thursday, December 1, 2022
HomeDigit NewsXiaomi's Indian unit gave 'false' information to Deutsche Bank on multi-million dollar...

Xiaomi’s Indian unit gave ‘false’ information to Deutsche Bank on multi-million dollar payments

Global smartphone company Xiaomi’s unit in India had misinformed its banker Deutsche Bank for years. The company had claimed that it had an agreement for payment of royalty, which was not the case. The investigation against the company has found that it had “illegally” remitted money to American chip company Qualcomm and others in the ‘item’ of royalty.

However, the company has denied any wrongdoing and filed a petition in an Indian court contending that the payments made on its behalf were legitimate and that its business in an important market in India has almost come to a halt due to the confiscation of its assets. The court had last month refused to grant any relief to the company. The next hearing of the matter will be on November 7. New information has been received on the findings of the investigation from the documents submitted by Xiaomi to the court. This suggests that the investigating officers erred in the transfer of funds to Qualcomm for licensed technologies such as patents.

A Deutsche Bank executive in the country told investigative authorities in April that under Indian law, there is a legal agreement between Xiaomi’s unit in India and Qualcomm for royalty payments. agreement It was necessary to be The company had told Deutsche Bank that it had such an agreement.

The Karnataka High Court has dismissed an appeal against the confiscation of Xiaomi’s assets worth about $676 million. The Enforcement Directorate (ED) has attached these assets. ED alleges that company Illegally transferred money abroad for payment of royalty. Last week, an appellate authority had allowed the ED to confiscate the assets. Xiaomi is among the top companies in the country’s smartphone market with a share of about 18 percent. After the border tension between India and China about two years ago, many Chinese companies have faced difficulties in doing business in India. The central government had also banned more than 300 Chinese apps including Tiktok for security reasons. In the last few months, government agencies have taken action against many Chinese firms.

- Advertisement -
MOBILE

- Advertisment -

- Advertisment -spot_imgspot_imgspot_img

Auto

Two Wheeler

BUSINESS AND FINANCE

Digit News

spot_img