FEMA violation: ED notices to Xiaomi, 3 foreign banks
New Delhi, June 9
The Enforcement Directorate (ED) on Friday said it has issued show-cause notices to Chinese mobile manufacturer Xiaomi, its chief financial officer and director Sameer Rao, former MD Manu Jain and three foreign banks for alleged foreign exchange violation of more than Rs 5,551 crore.
The adjudicating authority under the Foreign Exchange Management Act has issued show-cause notices to Xiaomi Technology India Private Limited, the two executives, Citi Bank, HSBC Bank and Deutsche Bank AG, the agency said.
The agency had seized Rs 5,551.27 crore worth of funds of Xiaomi Technology India Private Limited lying in its bank accounts under the FEMA for “unauthorised” remittance of this amount in guise of royalty abroad.
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