They said the Enforcement Bureau investigation into Xiaomi India’s royalty payments could have a significant impact on foreign companies, including competing Chinese firms, creating an environment of uncertainty and harming the larger electronics manufacturing ecosystem. The ED said Xiaomi India’s royalty payments were illegal and violated the Foreign Exchange Management Act (FEMA), and said it should not make royalty payments because it is registered as a reseller. The ED then froze the company’s bank assets worth more than 5,500 kroner, which Xiaomi India challenged in court. The order was reserved by the Karnataka High Court.

To escape investigations phone companies may alter royalty agreements - 90To escape investigations phone companies may alter royalty agreements - 36To escape investigations phone companies may alter royalty agreements - 24To escape investigations phone companies may alter royalty agreements - 55