Historic setback for China! India orders biggest fund seizure ever- Xiaomi's 5551 crore
The competent authority under the Foreign Exchange Management Act (FEMA) has approved an order of seizure of over ₹5551 crore worth of deposits of Chinese mobile phone manufacturer Xiaomi -- the highest amount frozen till date in India -- the ED said Friday.
The agency charged the popular Chinese phone maker with remitting foreign currency equivalent to ₹5,551.27 crore to three entities -- one Xiaomi Group company and two US-based unrelated entities -- in the guise of royalty.
The Enforcement Directorate (ED) had first issued the order of seizure of these bank deposits on April 29 under the FEMA and later sent it for approval of the competent authority, as required under the law that regulates foreign exchange violations in the country.
"The competent authority appointed under section 37A of the FEMA has confirmed the seizure order of ₹5551.27 crore (dated 29.04.2022) passed by the Directorate of Enforcement against Xiaomi Technology India Private Limited under the provisions of FEMA."
"This is the highest amount of seizure order in India which has been confirmed by the authority till date," the federal agency said in a statement.
A competent authority under the FEMA is an officer appointed by the central government to adjudicate an ED seizure order issued under the law. Such an officer should not be below the rank of a joint secretary.
The authority, it said, while confirming the seizure order held that the ED is "right in holding" that foreign exchange equivalent to ₹5,551.27 crore has been transferred out of India by Xiaomi India in an "unauthorised" manner and is held outside India on behalf of the group entity in contravention of Section 4 of the FEMA.
The agency charged that Xiaomi India did not avail any
Read more on tech.hindustantimes.com
