Xiaomi India has leveled an allegation of threats of physical violence by the agency investigating its royalty payments in the country. The company alleged that its top executives were threatened with physical violence during an investigation by India’s financial crimes watchdog. Xiaomi is also alleging that the agency employed coercion in its quest to unjustly nail the company. These claims were from a court filing by the company.xiaomi-logo

The exclusive details about Xiaomi’s accusations against India’s Enforcement Directorate were first reported by Reuters. The court documents stated that both the former India managing director and the current Chief Financial Officer were warned of dire consequences during questioning. The duo was being coerced by the Directorate to submit certain documents. However, the Enforcement Directorate has issued a strong rebuttal of the claims of threats issued by its officials during the interrogation. The financial watchdog stated that Xiaomi’s claims were untrue and baseless. It further stated that the company executives had deposed voluntarily in a very conducive environment.

The court filing by Xiaomi was dated May 4 and is the latest twist in the matter relating to royalty payments by the company in India. The agency says Xiaomi remitted about $725 million in dubious royalty payments abroad. Xiaomi continues to deny any wrongdoing, saying that its royalty payments were legitimate and truthful. It feels it was unfairly targeted in the investigation. Already, the court had put on hold, the freezing action on Xiaomi’s bank accounts by the financial watchdog. The next hearing has been fixed for May 12.

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