Karnataka HC declines relief to Xiaomi over Rs 5,551-cr asset freeze

An Indian court on Thursday declined to lift a freeze on Xiaomi Corp’s $676 million worth of assets, even as the Chinese smartphone group said this enforcement action had “effectively halted” its operations in its key Indian market.

The Enforcement Directorate froze Rs 5,551 crore of Xiaomi assets in April, alleging the company made illegal remittances to foreign entities by passing them off as royalty payments. Last week, an appellate body confirmed the seizure.

Xiaomi, which denies any wrongdoing, challenged the asset freeze in the High Court of southern Karnataka state, saying in its legal filing it “is severely disproportionate and has effectively halted the operations” of the company.