Xiaomi again denied wrongdoing and challenged the asset freeze in the Karnataka State High Court. According to a report from Reuters, the court refused to grant any relief on the seizure pending the completion of the investigation. A few hours after this court order was issued, a new report from South Asia Index Xiaomi has surfaced online claiming that it is moving its operations from India to Pakistan. Xiaomi has now responded to the report, denying such claims.
Just IN:— Xiami says it has “virtually suspended” its operations in India after being targeted by the Indian government.
— South Asia Index (@SouthAsiaIndex) October 6, 2022
Xiaomi’s response to moving its operations from India to Pakistan
Xiaomi India, in response, denied a report that the company had moved its operations from India to Pakistan after the government froze its assets. The company termed the rumors as “completely false and baseless”.
This tweet is completely false & baseless. Xiaomi entered India in 2014 & within a year, we started our Make in India journey.
99% of our smartphones & 100% of our TVs are manufactured in India. We take all measures to protect our reputation from false & inaccurate claims.
— Xiaomi India (@XiaomiIndia) October 7, 2022
Frozen Rs. The Karnataka High Court has directed Xiaomi India to first provide bank guarantees for assets worth Rs 5,551 crore. Xiaomi’s lawyer stated that the bank guarantee requires the company to deposit the entire amount. Doing so makes it difficult for the company to operate, pay salaries and make inventory purchases ahead of the Diwali sale, when consumer sales typically peak.