India Seizes $725 Million From Chinese Phone Manufacturer Xiaomi

Authorities in India, seized $725 million from smartphone manufacturer Xiaomi on Saturday after an investigation found that the Chinese company broke the country's foreign exchange laws by making illegal money transfers abroad.

The Enforcement Directorate, India's financial investigation agency, tweeted that it had seized the amount from Xiaomi's local unit. The move comes after an investigation was launched by the federal agency in February over concerns about illegal remittances.

According to a statement quoted by the Press Trust of India (PTI), the agency added the smartphone maker had transferred $725 million to three foreign-based entities under the guise of royalty payments.

Earlier this month, the agency had also questioned Xiaomi's global vice president, Manu Kumar Jain, at the company's regional office in the southern city of Bengaluru, PTI reported.

In December, the firm's India office was raided in a separate investigation over alleged income tax evasion. Other Chinese smartphone makers including Huawei also had their Indian offices searched at the time.