NEW DELHI : Chinese smartphone giant Xiaomi Corp faces legal headaches in India as a federal financial crime-fighting agency and tax authorities investigate its business practices.
The Chinese company says its royalty payments were all legitimate and were for the"in-licensed technologies and IPs" used in its Indian products. The Reuters report revealing those accusations sparked a response from the federal agency, which called Xiaomi's allegations"untrue and baseless" and said executives had been deposed"voluntarily in the most conducive environment".
And in another case in January, India's Revenue Intelligence wing asked Xiaomi to pay $84.5 million for allegedly evading some import taxes.
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