Vikrant Shekhawat : Apr 30, 2022, 09:41 PM
ED seizes Rs 5551 crore from Xiaomi accounts under FEMA: The company has now clarified the action taken by the Enforcement Directorate (ED) on the Chinese company Xiaomi under the Foreign Exchange Management Act (FEMA). ED has seized assets worth Rs 5551.27 crore while taking action on Xiaomi Technology India Pvt Ltd, a wholly owned subsidiary of Xiaomi Group, in connection with illegal transactions.Xiaomi clarifiedXiaomi says that all operations in India are compliant with the laws after the seizure of ED. Xiaomi issued a statement saying that the company strictly complies with local laws and regulations.What did Xiaomi say on the ED action?Xiaomi said in the statement, 'We have studied the government order thoroughly. We assume that our royalty payments and details given to the bank are all valid and true. These royalty payments made by Xiaomi India were for the in-licensed technologies and IP used in our Indian variant products. Paying such royalty is a legal commercial arrangement for Xiaomi India. However, we remain committed to working closely with government officials to clear any misunderstandings.ED has made these allegationsThe ED has accused the company of providing "misleading information" to banks while remitting money abroad. The ED had claimed the transactions of Xiaomi to be illegal.