Indian Agency Sends Notice To Chinese & Other International Entities

India’s financial crime agency ED has sent notices to China’s Xiaomi, America’s Citigroup, British HSBC & Germany’s Deutsche Bank for violating rules.

India’s financial crime agency has issued notices to Xiaomi, Deutsche Bank, HSBC, and Citigroup regarding charged illegal money transfers made by the Chinese smartphone company to international entities. The agency made the announcement on Friday.

ED’s appellate authority has issued show cause notices under India’s foreign exchange laws for reported illegal remittances worth ₹55.51 billion rupees ($673.2 million). Agency has been freezing funds since last year.

In the latest development, it has been reported that companies are being issued show cause notices by federal agencies.

These notices are being sent to inquire about the reasons why the agency should not take action against the company for any wrongdoing.

The Chinese tech company Xiaomi as well as the three banks did not reply to calls for comments.

Xiaomi’s local unit in India has been accused of making illegal monetary transfers to foreign entities by disguising them as royalty payments, according to reports.

Keep Reading

The Chinese company has reaffirmed its stance that all payments made were legitimate and it will take necessary measures to safeguard its reputation and interests.

Xiaomi and its officials, including the chief financial officer of its India unit, have been issued notices by the ED, according to a statement released by the agency.

According to the agency, banks have been issued notices for allegedly allowing foreign remittances to be described as royalty payments without executing adequate research and obtaining necessary documentation.

Last year, according to Reuters, Indian investigators accused Xiaomi of deceiving its banker Deutsche by falsely claiming to have a royalty payment agreement for several years.

Xiaomi’s frozen assets have been found to be distributed among several banks, including Deutsche, Citi, and HSBC, according to court documents.

One of India’s top smartphone players has experienced rapid growth in recent years by providing budget smartphones. The company in question is Chinese. In the rapidly growing South Asian market, it is in competition with Samsung Electronics and other Chinese brands.

In a recent development, Xiaomi has stated that the asset freeze imposed on them last year was severely disproportionate and had brought their operations in India to a halt. Xiaomi’s request to lift the freeze was rejected by an Indian court in April.

Jasmine C.

Mabuhay! An upcoming Newswriter for the Asian Affairs from the Pearl of the Orient - Philippines. Avid follower of celebrity gossips, fashion news. I got into writing so that my fellow Kababayan will be constantly updated with the latest news.

Recent Posts

Korea and UAE Forge New Paths in Advanced Therapy Medicinal Products (ATMPs)

With an eye toward healthcare and biotechnology especially, the Republic of Korea and the United Arab Emirates (UAE) have lately…

November 5, 2024

Netflix Becomes a Surprising Hub for Shojo Anime Fans

Long prized for its romantic themes, nuanced characters, and emphasis on personal development, shojo anime has become an unexpected Netflix…

November 5, 2024

Indonesia Extends Sales Ban to Google Pixel Following Non-Compliance with Investment Requirements

Indonesia’s Ministry of Industry has implemented a ban on the sale of Google Pixel phones within the country, adding to…

November 4, 2024

One Piece Unveils Revamped Fish-Man Island Saga with New Opening Theme as Anime Prepares for 2025 Return

One Piece offers a new take of the legendary Fish-Man Island arc, so fans are in for a nostalgic trip…

November 4, 2024

Johor to Pioneer Premium Salaries for Skilled Workers as Malaysia’s First State Initiative under Johor-Singapore SEZ

Particularly in areas related to the forthcoming Johor-Singapore Special Economic Zone (JS-SEZ), Johor is poised to become the first state…

November 4, 2024

China-Japan Diplomatic Groundwork Laid Ahead of Anticipated Xi-Ishiba Summit in South America

China and Japan are getting ready for what would be a historic meeting between Chinese President Xi Jinping and freshly…

November 4, 2024

This website uses cookies.

Read More