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By Munsif Vengattiland Aditya Kalra
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NEW DELHI: Chinese smartphone giant<\/a> Xiaomi Corp<\/a> faces legal headaches in India<\/a> as a federal financial crime-fighting agency and tax authorities investigate its business practices.
Xiaomi<\/a> denies wrongdoing. But it recently hit the headlines with accusations that its executives faced intimidation from Indian enforcement officials, drawing public rebuttals from the agency and words of support from China.
Here are details of the tussles in one of Xiaomi's key markets:
WHAT'S THE ROYALTY CASE ABOUT?
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India's financial crime-fighting agency, the Enforcement Directorate, has been investigating Xiaomi since February. On April 30, the agency said the smartphone maker had illegally transferred funds abroad to three entities, including one from a Xiaomi group entity, \"in the guise of royalty\" payments.
It seized $725 million from the local bank accounts of Xiaomi, though an Indian court has put that decision on hold following a legal challenge by Xiaomi.
The Chinese company says its royalty payments were all legitimate and were for the \"in-licensed technologies and IPs\" used in its Indian products.
In its court filings, Xiaomi says that such payments were made to firms including U.S. chip giant Qualcomm Inc and that relevant disclosures had been made to Indian authorities.
\"PHYSICAL VIOLENCE\" THREATS
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Xiaomi's Indian court filing revealed the company had alleged its top executives faced \"physical violence\" threats and coercion by the Enforcement Directorate.
The company alleged Indian agents multiple times questioned Xiaomi's global vice president and former India head, Manu Kumar Jain, as well as current Chief Financial Officer Sameer B.S. Rao, and warned them of \"dire consequences\" if they did not submit statements as desired by the agency.
The Reuters report revealing those accusations sparked a response from the federal agency, which called Xiaomi's allegations \"untrue and baseless\" and said executives had been deposed \"voluntarily in the most conducive environment\".
China's foreign ministry in Beijing also reacted, asking New Delhi to carry out investigations into compliance with laws and to ensure Chinese companies<\/a> were not discriminated against.
OTHER TAX PROBES, CHINA SCRUTINY
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Chinese companies have struggled to do business in India since 2020, when a border clash occured between the two nations. India has cited security concerns in banning more than 300 Chinese apps since then, including popular ones, such as TikTok, and tightened norms for Chinese companies investing in India.
Xiaomi's India offices and manufacturing units were raided in December in a separate ongoing investigation over alleged income tax evasion.
And in another case in January, India's Revenue Intelligence wing asked Xiaomi to pay $84.5 million for allegedly evading some import taxes.
Xiaomi has expressed concerns in its latest court filing against the Enforcement Directorate, saying the agency's action \"creates an atmosphere of distrust and the image of the country suffers in international circles.\"
INDIA KEY MARKET FOR XIAOMI
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Xiaomi also sells other tech gadgets, including smart watches and televisions, and has a lot riding on the Indian market.
The company is best known, however, for its affordable smartphone price range that has helped it grow rapidly in India. In March, the company told analysts it retained \"the #1 position in India for 17 consecutive quarters.\"
Its market share has quadrupled from just 6% in 2016 to 24% last year, making it the Indian market leader, according to Counterpoint Research.
The company has 1,500 employees in India and provides a source of income for at least 52,000 workers employed by its third-party manufacturers, it said in its court filing.
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中国的小米战斗探针在印度市场的关键
小米极力否认有不法行为。但它最近指责登上报纸头条,其高管面临来自印度执法官员的恐吓,画公共机构和文字的反驳支持来自中国。
由Munsif Vengattiland Aditya卡尔拉
新德里消息:中国智能手机巨头 小米公司面临着法律头痛印度作为一个联邦金融打击犯罪机构和税务机关调查其商业行为。
小米否认自己的罪行。但它最近指责登上报纸头条,其高管面临来自印度执法官员的恐吓,画公共机构和文字的反驳支持来自中国。
这里有详细的角力在小米的一个主要市场:
皇室的情况是什么?
印度的金融打击犯罪机构、执法局一直在调查小米2月以来。4月30日,该机构表示,智能手机制造商非法转移资金到国外三个实体,其中包括小米组织实体,“皇室的幌子”支付。
缴获了7.25亿美元从本地银行账户的小米,尽管印度法庭已经搁置这个决定后小米的法律挑战。
中国公司说其特许使用金都合法的“获准生产技术和ip”在其印度产品使用。
在法庭文件中,小米公司赔偿说,包括美国芯片巨头高通(qcom . o:行情)和相关披露了印度当局。
“暴力”的威胁
小米的印度法庭文件中披露该公司声称其高管面临“暴力”威胁和强制执法局。
公司声称印度代理多次质疑小米的全球副总裁、前印度头,马努Kumar Jain,以及现任首席财务官Sameer B.S. Rao,警告他们说,“可怕的后果”,如果他们没有提交报表所需的机构。
路透社的报道揭示这些指控引起了联邦机构的响应,这叫小米的指控“不真实的,毫无根据的”,并表示高管被废黜最有利环境的“自愿”。
中国外交部在北京也反应,要求新德里进行调查,确保遵守法律中国公司没有歧视。
其他税收调查,中国的审查
中国企业一直难以在印度开展业务自2020年以来,当两个国家之间的边境冲突发生。印度已经提到安全问题在中国禁止超过300应用程序从那时起,包括受欢迎的,如TikTok和严格规范的中国公司在印度投资。
小米的印度办公室和制造单位被突袭了去年12月在一个单独的持续调查涉嫌逃税。
今年1月,在另一个案件中,印度的收入情报翼问小米因涉嫌逃避一些进口关税支付8450万美元。
小米已经担心执法局在其最新的法庭文件中,称该机构的行动”创造了一种不信任的气氛,在国际领域的国家形象受损。”
印度小米的关键市场
小米还销售其他科技设备,包括智能手表和电视,有很多骑在印度市场。
公司而闻名,然而,对于其价格实惠的智能手机价格区间,帮助它在印度快速增长。今年3月,该公司告诉分析师,保留“# 1的位置在印度连续17个季度。”
其市场份额翻了两番从2016年的6%到去年的24%,使其成为印度市场领袖,根据对比研究。
该公司在印度有1500名员工,并提供一个至少有52000工人的收入来源的第三方制造商,它在向法庭提交的文件中表示。
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