India tax authority froze $478 million of Xiaomi funds in February | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
May 29, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, MAY 29, 2025
India tax authority froze $478 million of Xiaomi funds in February

South Asia

Reuters
12 May, 2022, 07:05 pm
Last modified: 12 May, 2022, 07:08 pm

Related News

  • Shrimp fry worth Tk1cr seized in Cumilla while being smuggled to India
  • India's alarm over Chinese spying rocks the surveillance industry
  • 31 more people pushed into Bangladesh through Kurigram, C’Nawabganj borders
  • 36 trafficked Bangladeshis return after serving jail terms in India
  • BSF pushes in 23 more people through Satkhira border, says BGB

India tax authority froze $478 million of Xiaomi funds in February

Reuters
12 May, 2022, 07:05 pm
Last modified: 12 May, 2022, 07:08 pm
A man walks past a logo of Xiaomi, a Chinese manufacturer of consumer electronics, outside a shop in Mumbai, India, May 11, 2022. REUTERS/Francis Mascarenhas
A man walks past a logo of Xiaomi, a Chinese manufacturer of consumer electronics, outside a shop in Mumbai, India, May 11, 2022. REUTERS/Francis Mascarenhas

Indian tax officials froze $478 million worth of deposits lying in local bank accounts of China's Xiaomi Corp (1810.HK) in February as part of an investigation into alleged tax evasion, according to two sources and a court filing reviewed by Reuters.

The fund freeze by tax authorities, being reported for the first time by Reuters, comes on top of another legal tussle Chinese smartphone giant Xiaomi faces where it has challenged - successfully so far - a block on $725 million of its funds by another Indian enforcement agency for alleged illegal foreign remittances. 

In the income tax case, authorities blocked 37 billion rupees ($478 million) in February under a legal provision that allows officials to take such actions to protect New Delhi's revenue interests, a Xiaomi court document showed.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Xiaomi did not respond to a request for comment.

The spokesperson for the income tax department declined to comment.

Two sources with direct knowledge said the amount blocked by tax inspectors was a fallout of the December raids conducted at Xiaomi India offices for alleged income tax evasion.

That investigation, said one of the sources, concerns allegations the Chinese company purchased smartphones from its contract manufactures at inflated costs in India, allowing it to record a smaller profit by selling them to customers and evading corporate income taxes.

It is not clear if the company appealed the decision.

The freeze by the income tax department was cited by Xiaomi in a May 4 court filing in southern Karnataka state, where it is challenging the other bank account seizure done by the federal crime fighting agency, the Enforcement Directorate, in the royalty case.

The Directorate says Xiaomi illegally made foreign remittances to certain entities "in the guise of" royalties even though it did not avail any service from them, an allegation the company denies. The Indian court has put on hold the Directorate's decision until May 23 on Xiaomi's appeal.

Referencing the two probes, Xiaomi states in its court document it "has cooperated in each of these investigations and provided all requisite information."

India's Income Tax Department "put under lien" $478 million of its deposits by an order dated Feb. 18, 2022, Xiaomi stated in its filing.

Chinese companies have struggled to do business in India since 2020, when a border clash occurred between the two nations. India has cited security concerns in banning more than 300 Chinese apps since then, including popular ones, such as TikTok, and tightened norms for Chinese companies investing in India.

Xiaomi recently hit the headlines with accusations that its executives faced intimidation from Indian Directorate's officials, drawing public rebuttals from the agency and words of support from the Chinese government. 

Xiaomi saw its share of the Indian smartphone market quadruple from just 6% in 2016 to 24% last year, making it the market leader, according to Counterpoint Research.

Top News / World+Biz

India / Xiaomi / freeze bank accounts

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • How termination of USDA-funded trade facilitation project will affect Bangladesh
    How termination of USDA-funded trade facilitation project will affect Bangladesh
  • File photo of Bangladesh Secretariat. Photo: Collected
    Visitors banned from entering Secretariat on Mondays and Thursdays
  • File photo of BNP Secretary General Mirza Fakhrul Islam Alamgir. Photo: Collected
    Asked for roadmap, govt didn’t give in 10 months, now 'December it is': Mirza Fakhrul

MOST VIEWED

  • Google Pay. Photo: Collected
    Google Pay likely coming to Bangladesh soon
  • Graphics: TBS
    Suspicious banking activities surge by 56% since July: Cenbank
  • Representational image of cable car/Freepik
    Cable car to be installed from Himchari to Reju Khal in Marine Drive Road
  • Illustration: TBS
    Bangladesh sees highest-ever per capita income of $2,820 in FY25, BBS provisional data shows
  • IFIC Bank receives Tk6,000 cr in new deposits in six months
    IFIC Bank receives Tk6,000 cr in new deposits in six months
  • Abdul Awal Mintoo, chairman of National Bank Limited. Sketch: TBS
    'Regulatory support must for National Bank to restore depositors' confidence'

Related News

  • Shrimp fry worth Tk1cr seized in Cumilla while being smuggled to India
  • India's alarm over Chinese spying rocks the surveillance industry
  • 31 more people pushed into Bangladesh through Kurigram, C’Nawabganj borders
  • 36 trafficked Bangladeshis return after serving jail terms in India
  • BSF pushes in 23 more people through Satkhira border, says BGB

Features

In recent years, the Gor-e-Shaheed Eidgah has emerged as a strong contender for the crown of the biggest Eid congregation in the country, having hosted 600,000 worshippers in 2017. Photo: TBS

Gor-e-Shaheed Boro Maath: The heart of Dinajpur

2d | Panorama
The Hili Land Port, officially opened in 1997 but with trade roots stretching back to before Partition, has grown into a cornerstone of bilateral commerce.

Dhaka-Delhi tensions ripple across Hili’s markets and livelihoods

3d | Panorama
Photo: Collected

Desk goals: Affordable ways to elevate your study setup

3d | Brands
Built on a diamond-type frame, the Hornet 2.0 is agile but grounded. PHOTO: Asif Chowdhury

Honda Hornet 2.0: Same spirit, upgraded sting

3d | Wheels

More Videos from TBS

The fight between two brothers; Adidas vs Puma

The fight between two brothers; Adidas vs Puma

3h | Others
Trump is again keen to make Canada the 51st state

Trump is again keen to make Canada the 51st state

4h | Others
Trump's tariff strategy and Europe's investment politics, violence or negotiation?

Trump's tariff strategy and Europe's investment politics, violence or negotiation?

5h | Others
Rumours surrounding the Club World Cup: Which club will Ronaldo join?

Rumours surrounding the Club World Cup: Which club will Ronaldo join?

5h | Others
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net