A few weeks ago some rather embarrassing news came out for Xiaomi. The company, in its positioning in India, was accused of having returned money (in total 725 million dollars) in the form of royalties, thus evading taxes in the country. Since then, the situation in India has deteriorated. CFO Manu Kumar Jain went there for clarification but apparently it all resulted in a complaint by Xiaomi against India. This accusation is of physical violence and threats against some company representatives. It brings us back the story exclusively Reuters.
Due to India's latest investigation into Xiaomi, the latter accused the country of physical violence. Here because
Chinese manufacturer Xiaomi claims to have suffered threats of "physical violence" and coercion during interrogation by India's financial crime agency, according to a court filing seen by Reuters. Officials ofEnforcement Directorate warned the former CEO of the company, Manu Kumar Jain, the current Chief Financial Officer Sameer B. S. Rao, and their families of "dire consequences" if they did not submit statements as desired by the agency. Basically, the country would like statements (even false ones) but in line with their point of view.
According to the statements, the executives of Xiaomi "have been able to withstand the pressure for some time, (but) eventually succumbed to such extreme and hostile abuse and pressure and unwittingly issued some statements".
Read also: It was only a matter of time: Xiaomi also withdraws from Russia
After the news was released by the source we refer to, management released a statement stating that Xiaomi's allegations were "false and baseless" and that the executives of the company had "voluntarily deposited in the most favorable environment". Recall that Xiaomi has been under investigation since February and last week the Indian agency has seized 725 million dollars to the company's Indian bank accounts, claiming to have made illegal overseas remittances "in the form of royalties".
Xiaomi denied any wrongdoing, stating that its royalty payments were legitimate. On Thursday, a judge heard Xiaomi's lawyers and suspended the Indian agency's decision to freeze the giant's bank assets. The next hearing is set for 12st May.
At the moment the company has not released any press releases but it will not be long in doing so. We will keep you posted
