Xiaomi has denied rumors about them shifting their operations from India to Pakistan, see what they said
Xiaomi has refuted claims that it is leaving India and relocating operations to Pakistan as a result of asset restrictions imposed by the government. Xiaomi referred to the South Asia Index article about the company expanding to Pakistan as “false and baseless.”
Here is what Xiaomi has said:
In response to the South Asia Index tweet, Xiaomi stated that the tweet is completely unjustified and inaccurate. Xiaomi entered India in 2014. Less than a year after beginning their operations in India, they began their Make in India adventure. 99 percent of their telephones and all of their televisions are produced in India. They will take all necessary actions to defend their reputation from misleading and incorrect claims.
This tweet is completely false & baseless. Xiaomi entered India in 2014 & in less than a year, we embarked on our Make in India journey.
99% of our smartphones & 100% of our TVs are made in India. We'll take all measures to protect our reputation from false & inaccurate claims.
— Xiaomi India (@XiaomiIndia) October 7, 2022
The Chinese mobile phone company appealed the FEMA competent authority’s September 29 decision upholding the ED’s asset seizure order on April 29. They filed a new case with the Karnataka high court on Friday. The central investigating agency has mandated asset forfeiture as retribution for allegedly breaching FEMA norms and transmitting money to three organizations outside of India under the guise of royalties.
A Karnataka high court decided to keep the judgment in place while freezing $676 million worth of Xiaomi Corp. assets. The Chinese smartphone manufacturer said that this action “basically stopped” its operations in the significant Indian market.
Xiaomi’s assets are claimed to have been frozen by the Enforcement Directorate in April as a result of claims that unlawful payments to foreign organizations were made under the guise of royalties.
The smartphone manufacturer denied the allegations and filed an appeal with the Karnataka high court, claiming the punishment was “severely disproportionate” to the charges. According to the corporation’s instructions from the court, bank guarantees for the $676 million in frozen assets must be presented first.
Xiaomi argued that submitting such bank guarantees would make it difficult for the business. As they need to fulfill inventory purchases for Diwali, pay employees’ salaries, and continue running their business.