What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
NEW DELHI: Rs 5,551 crore of Chinese smartphone maker Xiaomi Technology India has been seized by the Enforcement Directorate (ED), the agency said on Saturday.
The action has been taken under the provisions of the Foreign Exchange Management Act (FEMA), 1999.
A source in the ED said that Xiaomi India is a wholly-owned subsidiary of a China-based Xiaomi group. The seized amount, Rs 5,551.27 crore, was lying in the company’s bank accounts.
The ED had initiated investigation in connection with the illegal remittances made by the company in February this year. It started operations in India in 2014 and started remitting the money from the year 2015, according to ED officials.
“It has remitted foreign currency equivalent to Indian currency Rs 5551.27 crore to three foreign based entities which include one Xiaomi group entity in the guise of royalty.
“Such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities. The amount remitted to other two US based unrelated entities were also for the ultimate benefit of the Xiaomi group entities,” the official said.
Xiaomi India is a trader and distributor of mobile phones in India under the brand name of MI.
“Xiaomi India procures the completely manufactured mobile sets and other products from the manufacturers in India. Xiaomi India has not availed any service from the three foreign based entities to which such amounts have been transferred,” he said.
The company also provided misleading information to the banks while remitting the money abroad, the official added.
