The competent authority below the Foreign Exchange Management Act (FEMA) has authorised an order of seizure of over Rs 5,551 crore value of deposits of Chinese cell phone producer Xiaomi, the very best quantity frozen until date in India, the ED stated Friday.
The Enforcement Directorate (ED) had issued the order of seizure on April 29 below the FEMA and later despatched it for approval of the competent authority, as required below the legislation that regulates international change violations within the nation.
The order has been issued below part 37A of the FEMA towards Xiaomi Technology India Private Ltd, the federal company stated in a press release.
“This is the very best quantity of seizure order in India which has been confirmed by the authority until date.
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“The authority, while confirming the seizure of Rs 5,551.27 crore, held that ED is right in holding that foreign exchange equivalent to Rs 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 company stated.
The competent authority additionally noticed that the cost of royalty is nothing however a device to switch the international change out of India and the identical is in “blatant violation” of the provisions of FEMA, it stated.
Xiaomi is a dealer and distributor of cellphones within the nation below the model title of MI and Xiaomi India is a wholly-owned subsidiary of China-based Xiaomi Group.