Karnataka court rejects Xiaomi's challenge to $676 million asset freeze

ED froze Xiaomi's assets last year, alleging it made illegal remittances to foreign entities by passing them off as royalty payments

A court in India's Karnataka state has rejected China-based Xiaomi Corp's petition challenging the seizure of 55.51 billion rupees ($676.35 million) by the Enforcement Directorate, news website Live Law reported on Friday.

ED froze Xiaomi's assets last year, alleging the company had made illegal remittances to foreign entities by passing them off as royalty payments. The company denies any wrongdoing.