ED seizes Rs 5.5K cr from Xiaomi under FEMA provisions. The Enforcement Directorate, in one of its biggest hauls, has seized Chinese smartphone manufacturer Xiaomi India’s assets worth Rs 5,551.27 crore. The agency, which investigates financial crimes, found the company in violation of the Foreign Exchange Management Act with regard to the illegal outward remittances made by it.
ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company
The case involves foreign remittances made by the country to China via a third company, violating RBI’s guidelines. An ED official had told the Indian Express that around Rs 3,000 crore were sent to China in violation of the FEMA. A case had been registered against the company for the same.
The news daily had reported that Jain had been asked to furnish financial documents pertaining to the company, including shareholding, fund sources, vendor contracts and payments made abroad.
Xiaomi is the market leader in the Indian smartphone space.
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