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The Enforcement Directorate (ED) on Saturday, 7 May, issued a statement, denying allegations that the statement of the officials of Xiaomi India was taken under coercion by the agency.
According to the report, the agency had warned the company’s former India managing director, Manu Kumar Jain, current Chief Financial Officer Sameer BS Rao, and their families of “dire consequences” if statements were not submitted.
The ED had last week seized Rs 5551.27 crore of the company under the provisions of Foreign Exchange Management Act, 1999 in connection with alleged illegal outward remittances made by it.
However, on 5 May, the Karnataka High Court had stayed the agency's 29 April order under which it seized the amount.
In Saturday's statement, the ED called the allegations "untrue and baseless", saying the the officials provided their statements "voluntarily in the most conducive environment on various occasions".
It said that statements had been taken from two top executives of the company between 13 and 26 April and no complaint had been filed by them after that.
"It appears that allegation now made after passage of substantial time is an afterthought. The allegations are baseless and far from the facts," the ED said.
"ED has seized Rs 5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company," the ED said in a statement.
It added, "The company has remitted foreign currency equivalent to Rs 5,551.27 crore to three foreign-based entities which include one Xiaomi group entity, in the guise of royalty," Business Standard quoted.
As per the mobile company, their move was based on instructions of their Chinese "parent group" entities. The amount paid to other two US-based entities were also for the profit of Xiaomi group entities.
However, the ED reportedly added that the manufacturers have not availed any service from the three entities involved in the transaction.
The Karnataka High Court meanwhile on 5 May, stayed the ED's order under which it seized the Rs 5,551.27 crore from the company.
Justice Hemant Chandangoudar on Thursday stayed the ED order, subject to the condition that the petitioner operates the bank accounts which are seized under the impugned order for the purpose of carrying out the day to day activities of the company, reported IANS.
The matter has been posted for further hearing to 12 May.
(With inputs from Business Standard, IANS and Reuters.)
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