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<\/span><\/figcaption><\/figure>New Delhi: Xiaomi India<\/a> has said the company's royalty payments are ‘legit and truthful’, and that the company's operations are firmly compliant with the local laws and regulations.

The Chinese smartphone maker, India’s largest, was reacting to the Enforcement Directorate (ED) freezing Rs 5551.27 crores worth of bank assets of the company, under alleged violation of Foreign Exchange Management Act<\/a> (FEMA).

\"We have studied the order from government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi<\/a> India made were for the in-licensed technologies and IPs used in our Indian version products,\" the company said in the statement.

The ED said its investigation found that Xiaomi India, which acts as a trader and distributor of mobile phones, procures completely manufactured mobile handsets and other products from manufacturers in India, has not availed any service from the three foreign-based entities to whom the payments have been made.

ED also found the company had provided misleading information to the banks while remitting money abroad.

\"ED<\/a><\/figure>

ED seizes Rs 5,551 crore of Xiaomi India for alleged forex violation<\/a><\/h2>

“This amount of Rs 5,551.27 crore lying in the bank accounts of the company has been seized by the ED,” the agency said. Sources said the agency is investigating the company’s foreign funding, shareholding, financial statements and related activities. Jain’s statement had been recorded at the agency’s Bengaluru office.<\/p><\/div>

\"\"
<\/span><\/figcaption><\/figure>New Delhi: Xiaomi India<\/a> has said the company's royalty payments are ‘legit and truthful’, and that the company's operations are firmly compliant with the local laws and regulations.

The Chinese smartphone maker, India’s largest, was reacting to the Enforcement Directorate (ED) freezing Rs 5551.27 crores worth of bank assets of the company, under alleged violation of Foreign Exchange Management Act<\/a> (FEMA).

\"We have studied the order from government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi<\/a> India made were for the in-licensed technologies and IPs used in our Indian version products,\" the company said in the statement.

The ED said its investigation found that Xiaomi India, which acts as a trader and distributor of mobile phones, procures completely manufactured mobile handsets and other products from manufacturers in India, has not availed any service from the three foreign-based entities to whom the payments have been made.

ED also found the company had provided misleading information to the banks while remitting money abroad.

\"ED<\/a><\/figure>

ED seizes Rs 5,551 crore of Xiaomi India for alleged forex violation<\/a><\/h2>

“This amount of Rs 5,551.27 crore lying in the bank accounts of the company has been seized by the ED,” the agency said. Sources said the agency is investigating the company’s foreign funding, shareholding, financial statements and related activities. Jain’s statement had been recorded at the agency’s Bengaluru office.<\/p><\/div>