India tax authorities froze $478 million of Xiaomi funds in Feb: Report

The fund freeze by tax authorities comes on top of another legal tussle Chinese smartphone giant Xiaomi faces.

Indian tax officials froze $478 million worth of deposits lying in local bank accounts of China's Xiaomi Corp in February as part of an investigation into alleged tax evasion, according to two sources and a court filing reviewed by Reuters.

The fund freeze by tax authorities, being reported for the first time by Reuters, comes on top of another legal tussle Chinese smartphone giant Xiaomi faces where it has challenged - successfully so far - a block on $725 million of its funds by another Indian enforcement agency for alleged illegal foreign remittances.

In the income tax case, authorities blocked