On May 1, according to Reuters, India said that Xiaomi and its companies were suspected of illegal remittance to foreign entities in violation of India’s local foreign exchange management law, and had seized about 4.8 billion yuan ($725 million) of assets belonging to Xiaomi Technology India PVT. (hereinafter referred to as “Xiaomi India”).

In response to the seizure of funds in its bank account by Indian government departments, Xiaomi India officially issued a statement saying: the company strictly abides by Indian laws, and the royalties paid are for the licensed technology and intellectual property rights in Xiaomi’s Indian products. These royalties and bills are all legal and true. Xiaomi India is committed to working closely with government departments to clarify any misunderstandings.

Millet has been repeatedly investigated by the Indian authorities. On January 5, the Indian Ministry of Finance said in a statement that after the investigation found that there was tax evasion, it had sent a notice to Xiaomi India to recover 6.53 billion rupees (about US $88 million) from the company. On January 27, Gao Feng, a spokesman for the Ministry of Commerce, responded that China was concerned about this and was worried about the investment environment in India.

In December 2021, Xiaomi Technology India Private Co., Ltd. was investigated on suspicion of tax evasion. In January 2022, the tax of 6.53 billion rupees (about 558 million yuan) was recovered. On April 14, vice president manu Kumar Jain was asked to testify in court to investigate whether Xiaomi’s business behavior violated Indian law.