ED seizes Rs 5,551 cr deposits of Xiaomi India for FEMA violation
The action has been taken against Xiaomi Technology India Private Limited
Funds worth over Rs 5,551 crore of Chinese mobile manufacturing company Xiaomi India have been "seized" for violating the Indian foreign exchange law, the Enforcement Directorate said on Saturday.
The action has been taken against Xiaomi Technology India Private Limited.
The company (also called Xiaomi India) is a trader and distributor of mobile phones in the country under the brand name of MI.
The seizure of funds has been done under relevant sections of the Foreign Exchange Management Act (FEMA) after a probe was launched by the federal agency against the company in connection with alleged "illegal remittances" sent abroad by the Chinese firm in February.
Xiaomi started its operations in India in 2014 and started remitting the money from the next year, it said.
The said section of the civil law of FEMA talks about "holding of foreign exchange."
The ED also accused the company of providing "misleading information" to the banks while remitting the money abroad.
Earlier this month, the ED had also questioned the global vice president of the group, Manu Kumar Jain, at the agency's regional office in Bengaluru, Karnataka.
