Court vacates $448 million ban on Xiaomi , Report says

A court has lifted the ban imposed by the Income Tax Department on Chinese company Xiaomi. According to media reports, two people present during the court hearing have informed about this. The Income Tax Department had decided to freeze Xiaomi Corp's bank balance of $448 million earlier this year. The court of Karnataka has given this decision against this decision. However, the copy of the court's decision has not been received yet. No response has been received from Xiaomi and the Income Tax Department on this news of Reuters.

The Income Tax is not the only agency that has taken action against Xiaomi. A few months back, in a separate case, the ED had also attached the company's assets. ED had seized Rs 5551.27 crore of Xiaomi Technology India Pvt Ltd under FEMA. Xiaomi India is a wholly owned subsidiary of the China-based Xiaomi Group. This amount was seized from the company's bank accounts, ED started investigation in the month of February this year regarding the illegal transactions done by the company.

The company started its work in India in the year 2014 and started sending money from the year 2015. The company sent foreign exchange equivalent to 5551.27 crores to three foreign entities, including a Xiaomi group company, under the guise of royalty. Such a huge amount was sent in the name of royalty on the orders of the institutions of his Chinese parent group. Money was also sent to 2 organizations of America which were not related to it, which ultimately benefited the organizations of Xiaomi group.