Xiaomi is the latest big Chinese company to face the heat in India

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India has seized more than $700 million from one of China's biggest tech companies after accusing it of moving money out of the country illegally.

In a statement on Friday, India's Enforcement Directorate — the country's main financial investigation agency — accused the Indian subsidiary of smartphone maker Xiaomi of violating foreign exchange laws by making"illegal remittances."The agency said Xiaomi India, acting on the instructions of its parent company,"had remitted foreign currency equivalent to [55.

Read MoreIt also accused the company of providing"misleading information to the banks while remitting the money abroad."Xiaomi India, which distributes Mi-branded smartphones, said in a statement that"all our operations are firmly compliant with local laws and regulations." In a Twitter post on Saturday, the company said it believed that the royalty payments and statements it made to the bank were"all legit and truthful.

 

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India do not tolerate corrupt foreign companies

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