Indian court lifts ban on $725m of Xiaomi's assets in royalty case

A "MI" logo stands outside the main entrance of the Xiaomi Corp. headquarters in Beijing, China. Photographer: Edmond Lococo/Bloomberg

An Indian court has put on hold a federal enforcement agency’s decision to seize $725 million from local bank accounts of China’s Xiaomi Corp for suspected violations of foreign exchange laws, two sources told Reuters on Friday.

The Enforcement Directorate last week seized the bank assets of Xiaomi Technology India Private Limited, saying it had found the company illegally remitted funds to three foreign-based entities, including one Xiaomi group entity, “in the guise of royalty” payments.

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