Xiaomi forex violation

Delhi: The Directorate of Enforcement (ED) has seized more than Rs 5,000 crore of Xiaomi on charges of foreign exchange violations. 

The company, Xiaomi India is a subsidiary of the China-based Xiaomi group. 

As per reports, the ED seized Rs 5,551.27 crore from the bank accounts of the company.

The money was seized under the provisions of the Foreign Exchange Management Act, 1999.

It may be mentioned that ED initiated a probe in connection with alleged illegal remittances made by the company in February this year.

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The ED said, “The company started its operations in India in 2014 and started remitting the money in 2015. It has so far remitted foreign currency equivalent to Rs 5,551.27 crore to three foreign-based entities, which include one Xiaomi group entity, in the guise of royalty.”

Xiaomi India operates under the brand name MI in India.

It is a trader and distributor of mobile phones and other electronic products.

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The ED said that such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities.

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