xiaomi india by IndiaTV News

Tech Firms Accuse Indian Government of “Lack of Understanding”
The Indian government seized more than $700 million from a local unit of Xiaomi India recently

A group of the biggest tech firms in the world came together to accuse the Indian government and many of their organisations of not understanding how many processes in the tech and business world work including the application of patents and copyrights. This comes right after the governments public spat with the Chinese based firm, Xiaomi India.

The India Cellular and Electronics Association sent a letter to the Indian government complaining to them about their agencies not understanding properly about the tech world especially with patents and royalties.

The India Cellular and Electronics Association is the apex agency in the country for the mobile and consumer electric field. The association consists of many manufacturers of these products, the providers of these technologies, value-added service application, services, and solution provider, and many who part of the distribution, supply chain, and retail of these products.

ICEA by Hans India

This agency works to create India as a manufacturing hub for consumer electronics and even help the government in penetrating all walks of life with these products to rapidly modernise the country. Xiaomi India and other Chinese smartphone companies such as Oppo are all part of this organisation.

The agency of India that fights money laundering recently raided the offices of Xiaomi India and accused the company for transferring funds internationally by falsely claiming it was for payments for patents. Over $ 700 million USD worth of funds has since been seized from Xiaomi by the organisation but that process has since been paused as they are waiting for the green light from the court.

The letter did not pin point to this incident specifically when they complained to the government but they did mention that accusing international companies of financial fraud would affect the business of the country in a negative manner. Other companies would also be forced to be in line and tread carefully which would cause business to slump which would in turn cause the economy to flat line their growth.

Xiaomi India replied to the government by saying that everything they have done has been fair and legal and their patent fees are justified and all of their accounts and financial records have been transparent and accurate.

The Indian government and other agencies have not come out to comment on this situation.

But Xiaomi has even gone to say that the Indian government is targeting them due to the fact that it is a Chinese company. The Chinese government is also studying and following the matter and will be looking to get their companies out of this issue quickly so they continue their normal operations and continue dominating the smartphone market in India.