Xiaomi''s news response to a tweet from a Twitter account that the Chinese smartphone manufacturer might modify its operations after its funds were frozen by Indian authorities over alleged violation of the Federal Exchange Management Act (FEMA) rules. In April, the Karnataka High Court had denied the company''s appeal for relief.
According to a Twitter on Thursday, the Chinese smartphone manufacturer may move its operations from India to Pakistan after the government of India froze the company''s assets worth $676 million (about Rs. 5,500 crore). Xiaomi responded to the tweet, declaring that it was "completely incorrect and baseless."
This comment is completely false and baseless. Xiaomi entered India in 2014 and in less than a year, we embarked on our Make in India journey.99% of our smartphones and 100% of our TVs are made in India. We''ll take all precautions to preserve our reputation from false and misleading statements.
After entering the Indian market in 2014, the company stated that 99 percent of its smartphones and TV models were assembled in India.
Xiaomi''s comment on Twitter came a day after the company''s appeal to the Karnataka High Court to lift the freeze on $676 million (nearly Rs. 5,500 crore) worth of assets was denied by the court. The ED is being investigated for allegedly made illegal remittances to foreign entities by distributing them off as royalty payments.
According to the Department of Homeland Security, the freezing of Xiaomi''s assets was verified by the competent authority under FEMA on September 30. In India, the seizure is the highest amount to be confirmed by the authority till date.
According to a Reuters report, the company had argued that the freezing of the assets was "severely dissatisfactory and has effectively halted the operations." The company previously claimed that its royalty payments were fair and true, and that it would "continue to use all means to protect the reputation and interests."