NEW DELHI: Chinese smartphone maker Xiaomi on Friday refuted reports that the company is moving its base out of India to Pakistan due to crackdown on its operations by Indian agencies. According to the South Asia Index, Xiaomi India has almost halted its operations in the country after being targeted by the Indian government.
The smartphone manufacturer said the tweet saying “Xiaomi may move its operations from India to Pakistan after the Indian government freezes its assets worth $676 million” is completely false and baseless.
Xiaomi, in its statement, said it the reports are completely false and baseless. “Xiaomi entered India in 2014 and in less than a year, we embarked on our Make in India journey. 99% of our smartphones and 100% of our TVs are made in India. We’ll take all measures to protect our reputation from false and inaccurate claims,” said the company.
The Chinese tech giant is facing a heat from the Enforcement Directorate (ED) because of its funds embezzlement. The Indian government had said it seized Xiaomi’s assets worth `5,551.27 crore for allegedly violating Foreign Exchange Management Act (FEMA) rules and transferring money in the guise of royalty to three companies outside India.
The company has approached the Karnataka high court and in a petition filed on October 3, Xiaomi challenged the September 29, 2022, order of the FEMA Competent Authority, which confirmed the April 29 seizure order of the Enforcement Directorate. Xiaomi has approached the HC earlier this year against this order too but was told to approach the Competent Authority under FEMA.
Xiaomi faces probe
Xiaomi is facing investigation in India for allegedly violating FEMA rules. The Indian government had said it seized Xiaomi’s assets worth Rs 5,551.27 crore