India court rejects Xiaomi’s challenge to $676 million asset freeze

On Friday, two sources told Reuters that an Indian court dismissed Xiaomi Corp.’s (1810.HK) lawsuit against the seizure of 55.51 billion rupees ($676 million).

Last year, India’s government financial crime bureau froze Xiaomi’s assets over allegations that it had made illicit royalty payments to overseas firms.

“We are studying the matter and waiting for the written order,” a Xiaomi spokeswoman said of the Karnataka court ruling, adding that the company’s Indian activities comply with local rules.

The corporation has claimed it will “continue to use all means to protect the reputation and interests” and that its royalty payments are genuine.

Xiaomi has fallen behind Samsung Electronics (005930.KS) in India’s second-largest smartphone market as users want better features.

Since 2020, political concerns after a border skirmish have hindered Chinese business in India.

Since then, India has banned over 300 Chinese apps, including TikTok, citing security concerns and tightened laws for Chinese companies investing in India.