Xiaomi's relations with regulatory economic authorities of India, as now the Xiaomi made serious allegations about "threats of physical violence”Against its executives.
Η Xiaomi dominates in recent years in Indian smartphone market, thanks to its extensive product portfolio and the huge popularity of its range Redmi Note . The company remained as the No1 smartphone manufacturer in the second largest market in the world despite the tough competition it has from Samsung and Realme belonging to Oppo.
The Xiaomi Brand Name It has also become popular in India mainly through extensive social media marketing promotions in the country, but lately things have taken a very bad turn.
Η Indian Service for Combating Financial Crime (the equivalent Financial Crime in Greece), seized last week over 725 million (5.551 crores) in Xiaomi bank accounts, while at the same time, the company claims that the agents of this service threatened its executives and their families with “physical violenceIf they refuse to consent.
The Indian regulator claims that the Xiaomi India violated the foreign exchange legislation, making illegal remittances disguised as royalty payments to foreign entities under instructions received from the parent company based in China. THE Xiaomi right away hurried to issue a statement in this regard, stating that the royalties were paid for the "technologies and IP licensesUsed in its Indian products.
Η Xiaomi India even secured the suspension order from Karnataka Supreme Court, against the decision issued by the Indian agency for the fight against financial crime.
Today, however, they came to light from Reuters new information based on the statements submitted by Xiaomi to the judicial authorities of India. According to the company's allegations, many of the top company officials in India were threatened with "physical violence»During interrogation by the regulator last April.
The agents from Indian SDOE asked Xiaomi executives to submit the statements as they wished, and otherwise threatened themselves and their families with "terrible consequences».
Both Director of Global Xiaomi, Mr. Manu Kumar Jain as much as Chief Financial Officer of Xiaomi India, Mr. Sameer BS Rao, threatened that they and their families would come with dire consequences, such as arrest, damage to their career prospects, criminal liability and physical violence, if they did not make statements in accordance with the requirements of the Indian SDOE.
Xiaomi executives were able to withstand these threats for some time, according to records, but the growing pressure on them eventually forced them to make these "unintentional" statements.
Such a forced statement was made by its financial director Xiaomi India, Mr. Sameer BS Rao, who had stated that the rights payments had been made "according to the instructions of some executives from the Xiaomi group"However, he withdrew this statement the very next day, saying that"was done under duress».
The Indian Financial Crimes Agency has already issued a statement to the magazine Business Standard, claiming that Xiaomi executives filed "in the most favorable environmentAnd all their allegations are false. He notes that these claims are made a posteriori and come after a significant period of time from the recording of the statements.
The Indian government had long ago banned the circulation of the Play Store and the App Store, applications coming from Chinese developers, however, this is the first time an Indian regulator has taken such harsh action against a Chinese smartphone maker in the country.
The diplomatic tensions between China and India have increased rapidly after the deadly military skirmish along the border Tibet-India in 2020. In the midst of changes in land control and economic policy pursued by the Government of India since then, some Indian consumer groups have also imposes a boycott against Chinese brands operating in the country, although Xiaomi does not seem to have had as significant an impact on its sales as other Chinese manufacturers.
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