ED (Enforcement Directorate) froze Xiaomi’s 725 Million US Dollars lying in an account. This translates to 55,79,43,32,500.00 (Fifty Five Thousand Crores).
ED charged the top officials of the company of illegally remitting royalty payment to the parent company when no payment was due.
It interacted with some top Xiaomi officials and got a statement issued from them to this effect.
But in a court filing in Bangalore, the CFO has retracted this statement and said that the statement was coerced from him under extreme duress. And that the payment made by Indian arm was perfectly legal.
The Bangalore court has stayed the freezing of the account of Xiaomi.
The Xiaomi employees were even threatened with physical violence!
Perhaps Xiaomi too forgot to buy Electoral Bonds to ensure that it remains in the ruling party’s good books!