BENGALURU: The excessive court docket of Karnataka on Friday upheld the seizure of Rs 5,551 crore from Xiaomi India for violation of the Foreign Exchange Management Act (Fema).
The Enforcement Directorate (ED) had seized the quantity from the corporate’s account and this was upheld by the competent authority. Xiaomi had challenged the competent authority’s order within the HC.
Justice M Nagaprasanna dismissed the petition on Friday, holding that it was legitimate below part 37A of Fema. However, liberty was granted to Xiaomi to strategy the appellate tribunal and problem the competent authority’s order below part 37A(5). “We are studying the matter and waiting for the written order. We’d like to reiterate that our operations in India are compliant with all local laws and regulations,” a Xiaomi India spokesperson mentioned in an announcement. The ED had in 2022 ordered the seizure of Rs 5,551 crore within the accounts of Xiaomi for allegedly violating Fema guidelines and transferring cash within the guise of royalty to a few firms outdoors India — two within the USA and one in China.
The firm had approached the HC towards this order. The HC had, nonetheless, ordered it to strategy the competent authority below Fema. The authority had upheld the seizure. Xiaomi had approached the HC once more difficult the competent authority’s order.
The Enforcement Directorate (ED) had seized the quantity from the corporate’s account and this was upheld by the competent authority. Xiaomi had challenged the competent authority’s order within the HC.
Justice M Nagaprasanna dismissed the petition on Friday, holding that it was legitimate below part 37A of Fema. However, liberty was granted to Xiaomi to strategy the appellate tribunal and problem the competent authority’s order below part 37A(5). “We are studying the matter and waiting for the written order. We’d like to reiterate that our operations in India are compliant with all local laws and regulations,” a Xiaomi India spokesperson mentioned in an announcement. The ED had in 2022 ordered the seizure of Rs 5,551 crore within the accounts of Xiaomi for allegedly violating Fema guidelines and transferring cash within the guise of royalty to a few firms outdoors India — two within the USA and one in China.
The firm had approached the HC towards this order. The HC had, nonetheless, ordered it to strategy the competent authority below Fema. The authority had upheld the seizure. Xiaomi had approached the HC once more difficult the competent authority’s order.
