Article Timeline - Xiaomi India vs ED
Chinese electronics giant and India's largest smartphone seller Xiaomi is under scanner by Indian authorities for allegedly evading taxes.
India’s tax watchdog, the Directorate of Revenue Intelligence, says Xiaomi lowered the value of goods imported from Qualcomm USA & Xiaomi’s Chinese parent by not including royalties & license fees it paid. This way it saved or evaded ₹653cr in customs duty over 3yrs.
Sources: News 18, India Today
Apr 12, 22
Reports suggested that former Xiaomi India head Manu Kumar Jain was summoned by India’s economic crimes watchdog, Enforcement Directorate (ED), to investigate if Xiaomi followed Indian foreing exchange laws.
Sources: Business Today, Economic Times
Mar 24, 22
Musk starts tweeting criticism of Twitter. He asks users whether Twitter adheres to democratic principle of free speech. He also reveals that he is sereiously thinking of starting his own social media platform.
Sources: Tech Crunch, Hindustan Times
Apr 30, 22
ED seizes ₹5,551cr worth of Xiaomi India assets as part of its investigation into alleged violations of Foreign Exchange Management Act (FEMA) laws. ED says Xiaomi illegally transferred ₹5,551cr in the guise of royalty payments to 3 foreign entities.
Sources: Economic Times, TechCrunch
May 05, 22
Karnataka High Court stays ED order of freezing ₹5,500cr worth of Xiaomi India assets. HC says Xiaomi can now operate its bank accounts. Xiaomi argues that such royalty payments were also made by other smartphone makers but they are not being probed.
Sources: Times Now, Telegraph India
May 07, 22
Xiaomi India says ED is making threats of arrests, physical violence & damage to career to family of former head Jain and CFO Sameer Rao and their families.
Sources NDTV, The Wire
May 09, 22
China says it hopes India will provide a fair & non-discriminatory environment to its companies. It added that it always asks Chinese companies to abide by laws and regulations of foreign nations.
Sources: Times of India, Business Standard
May 12, 22
Karnataka HC extends stay on ED order of freezing Xiaomi India assets. HC says Xiaomi can continue to access funds for non-royalty payments. Next hearing scheduled for May 23, 2022.
Sources First Post, Bar and Bench