Xiaomi India dismisses speculation about India operations being moved to Pakistan as ‘False and baseless’
On Friday, Xiaomi dismissed speculation that the company might move operations from India to Pakistan. The company responded to a tweet from a portal on Twitter claiming that the Chinese smartphone maker could switch operations after its funds were frozen by Indian authorities due to an alleged breach. rules of the Foreign Exchange Management Act (FEMA). Earlier this week, Karnataka High Court rejected Xiaomi’s appeal for relief after nearly Rs. The company’s assets, worth 5,500 crore, were frozen by the Law Enforcement Bureau in April.
A South Asia Index tweet on Thursday claimed that the Chinese smartphone maker may move operations from India to Pakistan after the Indian government froze the company’s $676 million in assets. (about Rs 5,500). Xiaomi responded to the tweet on Friday, saying it was “completely untrue and baseless”.
This tweet is completely untrue and baseless. Xiaomi entered India in 2014 and in less than a year we embarked on the Made in India journey.
99% of our smartphones and 100% of our TVs are made in India. We will take every measure to protect our reputation from false and inaccurate statements.– Xiaomi India (@XiaomiIndia) October 7, 2022
The company further stated that it has joined the government’s Made in India initiative after entering the Indian market in 2014. It also added that 99% of smartphones and all The company’s TV models are assembled in India.
Xiaomi’s clarification on Twitter comes a day after the company’s appeal to Karnataka High Court to lift a freeze order on $676 million (nearly Rs 5,500) in assets was rejected by the court. The company is being investigated by the ED for allegedly illegally transferring funds to foreign entities by transferring them as royalty payments.
The freezing of Xiaomi’s assets is confirmed by the competent authority according to FEMA on September 30. The arrest is the highest amount in India confirmed by the authorities to date, according to ED.
The company has Debate According to a Reuters report, the asset freeze is “severely disproportionate and has effectively brought the company’s operations to a halt”. The company has previously stated that its royalty payments are legal and honest, and that it will “continue to use all means to protect its reputation and interests.”
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