Xiaomi's assets worth Rs 55 billion seized by ED over forex violations

Xiaomi's assets worth Rs 55 billion seized by ED over forex violations

The organisation began operations in India in 2014 and began money remittance in 2015.

On April 30, the Enforcement Directorate seized Rs 55 billion from Xiaomi Technology India Private Limited, a Chinese electronics firm.

According to top sources, the capital was seized after it was discovered illegally lying in bank accounts.

While the seizure is being carried out under FEMA and in relation to the company's illicit external remittances, the economic intelligence agency has launched an inquiry into the illegal remittances made in February.

Xiaomi India is a wholly-owned subsidiary of the Xiaomi group, which is based in China.

The Enforcement Directorate tweeted on its official handle: "ED has seized Rs 55 billion of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of the Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company,".

Xiaomi's assets worth Rs 55 billion seized by ED over forex violations
US blacklists Xiaomi as 'Communist Chinese military company'

The organisation began operations in India in 2014 and began money remittance in 2015.

Under the premise of royalty payments, Xiaomi has sent Rs 55 billion in foreign currency to three foreign-based businesses, one of which is a Xiaomi Group firm.

On the orders of their Chinese parent group organisations, such large sums in the name of royalties were remitted.

The money sent to the other two unconnected organisations in the United States was also for the benefit of the Xiaomi group's entities, prompting the ED to take action.

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