Xiaomi Fund: The largest seizure operation in the country is carried out by the Enforcement Directorate, ED. a Chinese mobile manufacturing company Xiaomi(Xiaomi) 5 thousand 551 crore funds will now be frozen by ED. The Enforcement Directorate had probed the company for violation of the Foreign Exchange Act (FEMA). After this, orders have been given to confiscate the amount of Rs 5,551 crore of the company. This is the biggest ever seizure operation by the ED in the country. The ED alleges that Xiaomi sent this amount abroad in the name of royalty by making forged documents.
foreign exchange management act The FEMA authority has approved the ED’s decision to seize Rs 5,551 crore from Chinese mobile maker Xiaomi for allegedly violating the FEMA Act. Earlier, the Karnataka High Court had dismissed Xiaomi’s appeal against the ED’s action. Xiaomi sells mobile phones in India under the name Mi. Giving details of the FEMA authority’s decision, a senior ED official said the seizure was allowed as it was clear that the probe agency had taken appropriate action.
Accused of sending crores of rupees abroad in the name of royalty
According to ED officials, from the second year after it entered the Indian mobile market in 2014, Xiaomi started sending crores abroad in the name of royalty. Original Chinese company Xiaomi was also sending royalties to two American companies. Both the companies in the US that were being remitted royalties from Xiaomi had nothing to do with Xiaomi’s operations in India.
…then the company will be fined three times more
Senior ED officials have said that sending thousands of crores abroad is a clear violation of FEMA. Proceedings are on against the company under FEMA. If the charges against the company are proved in court, the company will be fined more than three times for FEMA violations.
