India unfreezes Xiaomi’s blocked assets

An Indian court has pegged a federal enforcement agency’s decision to seize $725 million from local bank accounts of China’s Xiaomi Corp.

The agency had accused Xiaomi of suspected violations of foreign exchange laws, and seized its bank assets.

The agency claimed to have found that Xiaomi illegally remitted funds to three foreign-based entities, “in the guise of royalty” payments.

Xiaomi had denied any wrongdoing, saying its “royalty payments and statements to the bank are all legit and truthful”.

Xiaomi later filed a challenge against the Indian financial crime fighting agency’s decision in the High Court of the southern Karnataka state.

On Thursday, after hearing Xiaomi’s lawyers, a judge put a hold on the Enforcement Directorate’s decision.

The relief was granted on the condition that Xiaomi will inform Indian authorities of fund transfers such as royalty payments.