ED seizes Rs 5,551 crore from Chinese smartphone giant Xiaomi's bank accounts

• Image Credit: Internet

• Apr 30, 2022 | Sourav Boruah

mso-fareast-font-family:"Times New Roman";color:black">  mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#757575">Digital Desk: The
Enforcement Directorate said on Saturday that it has seized Rs 5,551.27 crore
from Xiaomi Technology India Pvt Ltd in violation of the Foreign Exchange
Management Act of 1999. The money was found in bank accounts connected to the
Chinese smartphone giant and was confiscated in connection with unlawful
overseas transfers, according to the investigation agency. mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#757575">  mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">According to Reuters,
the agency summoned a former India head of Xiaomi Corp earlier this month as
part of an investigation into whether the company's business activities were
compliant with Indian foreign currency rules. mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">  mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">For more over two
months, the ED has been investigating the firm. It has summoned former India managing
director Manu Kumar Jain for interrogation. mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">Neither Jain nor the
agency responded to a request for comment from Reuters. mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">  mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">According to Reuters,
Xiaomi abides by all Indian laws and is "completely compliant with all
regulations." "We are assisting authorities in their ongoing
investigation to ensure they have all of the necessary information." mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">  mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">According to Reuters,
the ED is investigating current business relationships involving Xiaomi India,
contract manufacturers, and the parent firm in China. mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

According to one
source, cash transfers between Xiaomi India and its parent business, including
royalty payments, are being scrutinized. mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";color:#424242">  mso-hansi-font-family:Calibri;mso-bidi-font-family:Calibri;color:#222222">

mso-bidi-font-family:Calibri;color:#222222">With a 24 percent market share in
2021, Xiaomi was India's top smartphone vendor.

mso-bidi-font-family:Calibri;color:#222222">

mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman";
color:#202124">