Much of Xiaomi’s payments that Indian authorities find suspicious are said to go to Qualcomm for the payments of socs and royalties. Meanwhile, Xiaomi’s chief financial officer in India has resigned.
Xiaomi would according to an anonymous Business Insider source have transferred a total of about 575 million euros to Qualcomm since 2015. The Indian Enforcement Directorate previously said that Xiaomi had transferred amounts to its own parent company in China and two American entities, without any compensation in return. That would be tax evasion.
That is why the ED froze 688 million euros of the assets of Xiaomi India, it turned out at the end of April. In the meantime, a judge has suspended the asset freeze. It is the second time this year that the ED has frozen large assets of Xiaomi India. The first time happened in February, but is beyond kept quiet.
Meanwhile, the financial chief of Xiaomi India has resigned, reports Financial Express. The smartphone maker confirms the departure, but does not mention the struggles with the Indian government as a reason. He is said to have left for ‘personal reasons’.
Chinese companies have had a harder time in India since 2020, following a conflict at the border between the two countries. Since then, India has banned more than 300 Chinese apps, including TikTok, “for security reasons.” The rules for Chinese companies in India have also since been tightened.