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NEW DELHI: The competent authority under the Foreign Exchange Management Act (FEMA) has approved an order to seize over Rs 5,551 crore deposits from Chinese mobile phone maker Xiaomi, the highest amount frozen to date in India, the ED announced on Friday.
The Enforcement Branch (ED) had issued the seizure order on April 29 under FEMA and then sent it for approval to the competent authority, as required by the law that regulates exchange violations. in the country.
The order was issued under FEMA Section 37A against Xiaomi Technology India Private Ltd, the federal agency said in a statement.
“This is the highest amount of foreclosure order in India that has been confirmed by the authority till date.
“The authority, while confirming the seizure of Rs 5,551.27 crore, found that ED was correct in saying that foreign currency equivalent to Rs 5,551.27 crore had been transferred out of India by Xiaomi India in an unauthorized manner and is being held outside India on behalf of the group entity in violation of FEMA Section 4,” the agency said.
The Competent Authority also observed that the payment of the fee is nothing but a tool to transfer foreign currency out of India and that it is a “flagrant violation” of FEMA provisions, she declared.
Xiaomi is a mobile phone trader and distributor in the country under the MI brand and Xiaomi India is a wholly owned subsidiary of China’s Xiaomi Group.
The Enforcement Branch (ED) had issued the seizure order on April 29 under FEMA and then sent it for approval to the competent authority, as required by the law that regulates exchange violations. in the country.
The order was issued under FEMA Section 37A against Xiaomi Technology India Private Ltd, the federal agency said in a statement.
“This is the highest amount of foreclosure order in India that has been confirmed by the authority till date.
“The authority, while confirming the seizure of Rs 5,551.27 crore, found that ED was correct in saying that foreign currency equivalent to Rs 5,551.27 crore had been transferred out of India by Xiaomi India in an unauthorized manner and is being held outside India on behalf of the group entity in violation of FEMA Section 4,” the agency said.
The Competent Authority also observed that the payment of the fee is nothing but a tool to transfer foreign currency out of India and that it is a “flagrant violation” of FEMA provisions, she declared.
Xiaomi is a mobile phone trader and distributor in the country under the MI brand and Xiaomi India is a wholly owned subsidiary of China’s Xiaomi Group.
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