ED has taken action against Chinese mobile manufacturer Xiaomi by issuing show-cause notices. The notices are in response to alleged foreign exchange violations amounting to Rs 5,551.27 crore.
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The Enforcement Directorate (ED) has issued showcause notices to top officials of Xiaomi, including CFO Sameer Rao and former MD Manu Jain, along with three banks.
The notices are related to alleged foreign exchange violations amounting to Rs 5,551.27 crore.
The ED complaint states that Xiaomi Technology India Private Limited made illegal remittances of Rs 5,551.27 crore outside of India.
Funds worth the same amount were seized by the ED from the company's bank accounts.
Showcause notices were served to Xiaomi Technology India Private Limited, the two executives mentioned, and three banks.
The ED claims that the unauthorized transfer of foreign exchange by Xiaomi India contravenes FEMA, 1999.
The funds held outside India on behalf of the group entity are liable to be seized under the provisions of Section 37A of FEMA.
Show-cause notices are issued after the completion of ED investigations, and penalties may be imposed on the accused.
In April 2023, the Karnataka High Court rejected a petition filed by Xiaomi India challenging an order passed by the Competent Authority under FEMA.
The case highlights the alleged foreign exchange violation and unauthorized remittance activities involving Xiaomi India.