Enforcement Directorate seizes Rs 5,551 crore of Xiaomi India

ED on Saturday seized Rs 5,551.27 crore of Xiaomi India

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ED seized the Xiaomi assets under the provisions of the Foreign Exchange Management Act,1999

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Xiaomi India is a wholly owned subsidiary of the China-based Xiaomi group

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ED claimed the seized amount was lying in the bank accounts of Xiaomi

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ED initiated an investigation for illegal remittances made by the company in February 2022

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ED had questioned Manu Kumar Jain, Xiaomi’s global vice-president in connection with the case

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ED claimed Xiaomi started remitting money from 2015

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Xiaomi remitted foreign currency valued INR 5551.27 crore to 3 foreign entities, including one Xiaomi group entity as Royalty

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Huge amounts were remitted on the instructions of their Chinese parent group

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Amount remitted to other 2 US entities was also for the ultimate benefit of Xiaomi group entities, ED claimed

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Xiaomi India is a trader of mobile phones in India under the brand name of MI.

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Xiaomi India procures mobile sets in India, & doesn’t avail any service from the 3 foreign entities to whom such amounts have been transferred

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The company remitted money in the guise of Royalty which is violation of Section 4 of the FEMA

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Xiaomi also provided misleading information to the banks while remitting the money abroad, ED claimed

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