SUMMARY
Xiaomi’s digital credit app Mi Credit offered low-interest credit in the range of INR 5,000 and INR 100K
Earlier this month, the Karnataka High Court rejected Xiaomi’s interim plea that challenged the seizure of INR 5551.27 Cr worth of funds by the Enforcement Directorate
Recently, Canalys’ data revealed that Xiaomi topped smartphone shipments to India in Q3 CY22 with 9.2 Mn units
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Chinese smartphone maker Xiaomi has pulled down its digital payment app Mi Pay and digital lending app Mi Credit from Play Store and its app store named GetApps.
Mi Pay, which launched in 2019, enabled Indian consumers to make UPI-based transactions. While the digital credit app Mi Credit offered low-interest credit in the range of INR 5,000 and INR 100K.
“As part of the annual strategic assessment activity and as a response to enhanced focus on our core business services, we closed the Mi Financial Services in March 2022. Over 4 years, we were able to connect and support thousands of customers. We are working with our partners and supporting our consumers during this process,” Xiaomi India spokesperson said.
The development was first reported by TechCrunch.
The development comes a few days after analyst company Canalys’ data unveiled that Xiaomi made the highest smartphone shipments (9.2 Mn units) to India in the third quarter of the calendar year 2022.
Earlier this month, the Karnataka High Court rejected Xiaomi’s interim plea challenging the seizure of INR 5551.27 Cr worth of funds by the anti-money laundering body Enforcement Directorate (ED).
In April, ED seized bank accounts of Xiaomi holding worth INR 5,551.27 Cr funds under the FEMA 1999. The regulatory body accused the Chinese smartphone company of remitting the said amount to three foreign companies, including its parent entity Xiaomi (in China), in the form of royalty payments.
Following this, in May, Xiaomi approached the Karnataka High Court, challenging ED’s move. The state high court stayed the ED’s seizure but allowed Xiaomi to operate its bank accounts.
In July, the ED informed the High Court that Xiaomi had prematurely challenged the apex court against this move. Thereafter, the court asked the competent authority appointed under the FEMA act to issue a notice to Xiaomi.
In September, the competent authority under FEMA confirmed the ED’s seizure of Xiaomi’s bank accounts.
Apart from Xiaomi, several other Chinese companies’ Indian business units, including Oppo, Vivo and Huawei, among others, are under the radar of Indian authorities for tax evasion and anti-money laundering activities.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.