India claims Xiaomi misled Deutsche Bank on illegal payment of royalties for years

Indian investigators have alleged Chinese smartphone maker Xiaomi Corp’s India unit misled its banker Deutsche Bank AG for years by claiming it had an agreement for payment of royalties when it had none, legal documents showed.

Xiaomi has locked horns with India’s financial crime fighting agency, the Enforcement Directorate, since it froze $670 million of the company’s bank assets saying a probe found the smartphone seller made “illegal remittances” to U.S. chip firm Qualcomm and others in the “guise” of royalties.