Xiaomi had been facing friction in its operations in India, after facing allegations of tax evasion by the Enforcement Directorate (ED), Income Tax Department and the Customs Department. Following all of this, a new rumor had suggested that the company is moving its operations from India to Pakistan. However, it appears that this rumor is false.
For those unaware, the Indian government had seized the Chinese tech giant’s assets that were valued around 5,551 crore INR. The government cited illegal remittances to three foreign based entities, which allegedly also included one Xiaomi group entity that was “in the guise of royalty.” The company has denied these accusations in the Indian high court. However, a day after this court order, a rumor surfaced regarding the brand shifting its operations from Pakistan to India.
But now, Xiaomi India has officially denied this rumor, stating that the news is “completely false & baseless.” The brand further added that “Xiaomi entered India in 2014 & in less than a year, we embarked on our Make in India journey. 99 percent of our smartphones & 100 percent of our TVs are made in India. We’ll take all measures to protect our reputation from false & inaccurate claims.”
This statement was shared on its official Indian unit’s Twitter handle. Since the seizure of assets worth over 5,551 crore INR, the company has claimed that this move has “effectively halted” its operations in the second largest smartphone market in the world. Furthermore, the Karnatake High Court has also declined to provide any relief on the seizure until the investigation is over.
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