Xiaomi's Rs 5,551 crore deposits seized under FEMA
New Delhi, September 30
The Enforcement Directorate (ED) today said the Foreign Exchange Management Act (FEMA) authority had ordered the seizure of deposits of Chinese mobile phone manufacturer Xiaomi worth Rs 5,551 crore. “This is the highest amount of seizure order in India till date,” the ED said.
The ED has accused Xiaomi of remitting foreign currency equivalent to Rs 5,551.27 crore to three entities — one Xiaomi Group company and two US-based unrelated entities — in the guise of royalty.
The agency had first issued the seizure order of these deposits on April 29, 2022. “The company remitted this amount in guise of royalty abroad which constitute violation of Section 4 of the FEMA. The company also provided misleading information to the banks while remitting the money abroad,” the ED had alleged.
