Xiaomi says 84% of Rs 5,551 crore seized by ED was royalty payment to Qualcomm

Chinese smart devices firm Xiaomi on Sunday said that over 84 per cent of the Rs 5,551.27 crore seized by the Enforcement Directorate was the royalty payment made to US chipset company Qualcomm.

The ED, under the Foreign Exchange Management Act (FEMA), has approved an order of seizure of over Rs 5,551 crore worth of deposits of Chinese mobile phone manufacturer Xiaomi — the highest amount frozen till date in India.

The Enforcement Directorate (ED) charged the Chinese phone maker with remitting foreign currency equivalent to Rs 5,551.27 crore to three entities — one Xiaomi Group company and two US-based unrelated entities — in the guise of royalty.