Chinese smartphone maker Xiaomi Corp has alleged its top executives faced threats of 'physical violence' and coercion during questioning by India's financial crime fighting agency, according to a court filing seen by Reuters.
Xiaomi won court relief, but accuses agency of threats -documentIndia says Xiaomi made foreign payments in guise of royaltieshas alleged its top executives faced threats of "physical violence" and coercion during questioning by India's financial crime fighting agency, according to a court filing seen by Reuters.
Jain and Rao were on certain occasions "threatened ... with dire consequences including arrest, damage to the career prospects, criminal liability and physical violence if they did not give statements as per the dictates of" the agency, according to the filing in the High Court of southern Karnataka state.
Xiaomi declined to comment citing pending legal proceedings. Jain and Rao did not respond to Reuters queries. Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India has cited security concerns in banning more than 300 Chinese apps since then and also tightened norms for Chinese companies investing in India.
"Such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities," the agency said.
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