MUMBAI (Reuters) — India’s financial crime-fighting agency sought a court order on Thursday to rescind a $725m freeze placed in Indian bank accounts by Xiaomi (OTC) Corp. It is investigating fund transfers made by the Chinese smartphone company.

According to the enforcement directorate, the money was seized because Xiaomi illegally transferred funds overseas to three entities including the Xiaomi group. They described them as “in the disguise of royalty”

However, the court held that decision after Xiaomi challenged it.