An appellate authority at the Enforcement Directorate (ED) issued the so-called show cause notices under India's foreign exchange laws for alleged illegal remittances of 55.51 billion rupees ($673.2 million).
India alleges Xiaomi's local unit made illegal remittances to foreign entities by passing them off as royalty payments.
The notices were issued to Xiaomi and officials including the chief financial officer of its India unit, the ED said in a statement.
The banks received notices because they allegedly allowed foreign remittances described as royalty payments without conducting due diligence and obtaining necessary documentation, the agency added.
Court documents show Xiaomi's frozen assets are spread across accounts at various banks including Deutsche, Citi and HSBC.
Persons:
Xiaomi, Aditya Kalra, Shubhendu Deshmukh, Shounak Dasgupta, Jamie Freed
Organizations:
HK, Deutsche Bank, HSBC, Citigroup, Reuters, Deutsche, Citi, Samsung Electronics, Thomson
Locations:
DELHI, India