ED seizes ₹5,551.27 crore belongs to Xiaomi Technology India Pvt Ltd

|HT|

The Enforcement Directorate on Saturday said it had seized ₹5,551.27 crore belonging to Xiaomi Technology India Pvt Ltd lying under provisions of the Foreign Exchange Management Act of 1999. The probe agency said the money was in bank accounts belonging to the Chinese smartphone giant and had been seized in connection with illegal outward remittances. Earlier this month it emerged the agency had summoned a former India head of Xiaomi Corp as part of a probe to determine if the company's business practices conformed with Indian foreign exchange laws. The ED has been probing the company since for over two months. It had asked Manu Kumar Jain, former India managing director, to appear for questioning.

Xiaomi said the company abides by all Indian laws and was 'fully compliant with all the regulations'. "We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information."

According to the report, the ED is probing existing business structures between Xiaomi India, contract manufacturers, and the parent entity in China.

One source said fund flows between Xiaomi India and its parent entity, including royalty payments, were being checked.

Xiaomi was India's top smartphone seller in 2021, with a 24% market share.

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