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Xiaomi’s coercion claims are baseless, says app management


The Law Enforcement Directorate on Saturday dismissed as “baseless” allegations that statements by officials of Xiaomi India, the wholly-owned subsidiary of Chinese mobile phone manufacturer Xiaomi, were recorded “under coercion,” saying the charges were an afterthought.

The federal agency was responding to some reports that Xiaomi alleged in a recent Karnataka High Court filing that its top executives were threatened with “physical violence and coercion” during questioning by ED investigators in Bengaluru.

The Directorate of Law Enforcement (ED) issued a statement stating that it was “a professional agency with a strong work ethic and that there was no coercion or harassment at any time. threat against company executives.

“Allegations that the statement by Xiaomi India officials was taken under duress by ED are false and baseless.” “Xiaomi India officials have voluntarily filed their statements before ED under FEMA in the most conducive environment on various occasions,” the agency said.

He said the statements were filed by them based on documents and information provided by the company during the investigation.

“Their statements corroborate the written responses submitted to ED and the evidence on file,” the agency said.

The development comes amid ED passing an order on April 29 to seize funds from Xiaomi India worth more than Rs. 5,551 crores for the alleged violation of India’s Foreign Exchange Management Act. .

Earlier this week, the Karnataka High Court suspended this ED order.

The agency added that Xiaomi’s Global Vice President Manu Kumar Jain’s statement was recorded four times, on April 13, April 14, April 21 and April 26, while that of Chief Financial Officer (CFO) Sameer BS Rao has been recorded six times.

Rao’s statements were recorded on March 25, April 14, April 19, April 21, April 22 and April 26, he said.

“However, no complaints were made by them at any time during the recording of statements on various occasions.” “The last statement from company officials was filed on 26.04.2022 and the seizure order was issued on 29.04.2022. It appears that the allegation now made after a substantial lapse of time is an afterthought” , did he declare.

The agency said Xiaomi’s claims are “baseless and far from fact”. Xiaomi is a mobile phone trader and distributor in the country under the MI brand.


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