A day after the Karnataka High Court prevented the Law Enforcement Branch from seizing Rs 5,551.27 crore of Xiaomi India’s money under allegations of violation of Foreign Exchange Management Act (FEMA ), the ED released a statement saying any allegations of coercion by the mobile phone maker were baseless.
“Allegations that Xiaomi India officials’ statement (were) taken under duress by ED (are) false and baseless. Xiaomi India officials voluntarily filed their statements before ED under FEMA in the environment on more conducive to various occasions. The statements were filed by them based on documents/information provided by the company during the investigation. Their statements corroborate the written responses submitted to ED and the evidence on file,” the statement said. investigative agency in the statement.
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ED added that no complaints were filed by company officials “at any time during the recording of statements on various occasions.” The agency said the statement from company officials was filed on April 26, 2022, and the seizure order was issued on April 29. away from the facts,” ED said.
Xiaomi, which sells mobile phones in India under the MI brand, is accused by the ED of violating FEMA Section 4 by transferring money on behalf of ‘Technology Royalty’ to three outside companies from India – two in the United States and one in China.
“It is reiterated that ED is a professional agency with a strong work ethic and that there has been no coercion or threat against company executives at any time,” the statement added.