However, Xiaomi has claimed that all of its operations “are firmly compliant” with local rules and regulations. Just after the news broke, Trinamool MP Mahua Moitra confronted the centre that Xiaomi was permissible to contribute ₹ 10 crore to the “opaque” PM CARES fund. The Xiaomi company made some “illegal remittances” in February this year, regarding which the probe agency commenced an investigation. In the year 2014, Xiaomi started its operations and then soon in 2015, it started remitting the money. The probe agency said that the company has already remitted foreign currency worth ₹ 5,551.27 crore to three foreign based entities, one of which is Xiaomi group entity, in the guise of royalty. Also, it has been reported that the money remitted to other two entities was also for the benefit of Xiaomi group entities. As per probe agency, Xiaomi India acquires fully manufactured mobile sets and various other products from the Indian manufactures, and it has not got any service from those three foreign based entities to whom this huge amount was remitted.
Xiaomi says that all of its royalty payments are “legit and truthful”
Chinese company Xiaomi in a statement said that it has carefully studied the orders from government. And the company believes that its royalty payments and statements to the bank are all legit and truthful. The company also said that all the royalty payments that Xiaomi India has made were for the in licensed technologies and Ips used in their Indian version products. Xiaomi Technology India Private Limited is also a trader and distributor of mobile phones in India under the brand name of MI.
