Chinese telecoms giant Xiaomi has had $478 million in deposits in local bank accounts frozen by Indian tax officials in February. The action comes as part of an investigation into alleged tax evasion, reports Reuters. The fund freeze by tax authorities is in addition to another legal tussle Chinese smartphone giant Xiaomi faces where it has challenged – successfully so far – a block on $725 million of its funds by another Indian enforcement agency for alleged illegal foreign remittances.
In the income tax case, authorities blocked 37 billion rupees ($478 million) in February under a legal provision that allows officials to take such actions to protect New Delhi’s revenue interests, a Xiaomi court document showed.
Two sources with direct knowledge said the amount blocked by tax inspectors was a fallout of the December raids conducted at Xiaomi India offices for alleged income tax evasion.