New Delhi (India), 22nd April 2023: Xiaomi Corp., a Chinese mobile phone company, filed a plea with the Karnataka High Court challenging the Enforcement Directorate’s seizure of Rs 5,551 crore ($676.35 million).
The ED froze Xiaomi’s assets last year on the grounds that the business had sent money abroad illegally while disguising such transfers as royalties. The business denied doing anything improper.
According to ED last year, Xiaomi’s deposits worth over Rs 5,551 crore have been cleared for seizure by the competent authority under the Foreign Exchange Management Act (FEMA). This is the greatest sum to be frozen in India to date.
The popular Chinese phone maker was accused by the agency of paying three organisations , one Xiaomi Group firm and two unrelated US-based entities, in the form of royalties in foreign currency worth Rs 5,551.27 crore.
As required by the law that governs foreign currency offences in the nation, ED had initially issued the order of seizure of these bank accounts on April 29, 2022 under the FEMA and afterwards sent it for approval from the appropriate authority.
