Karnataka HC Extends Stay on ED Order Freezing Xiaomi India's Rs 5,551 Cr Assets

Justice SG Pandit, who extended the stay, also posted the matter's next hearing date to 1 June.

The stay on Enforcement Directorate (ED)'s order, which froze Rs 5,551 crore assets belonging to Xiomi India was on Monday, 23 May, extended till 1 June by the Karnataka High Court.

(Photo: Altered by The Quint)

The stay on Enforcement Directorate's (ED) order which froze Rs 5,551 crore assets belonging to Xiaomi India, was on Monday, 23 May, extended till 1 June by the Karnataka High Court.

Justice SG Pandit, who extended the stay, also posted the matter for hearing on 1 June, reported news agency PTI.

On 29 April, the ED froze Xiaomi India's bank accounts for allegedly violating Foreign Exchange Management Act (FEMA). In the name of royalty payments, the agency alleged that the Chinese company illegally transferred money to three companies located abroad.

A vacation bench of the high court on 5 May stayed this order for facilitating the company to carry out its day to day activities.

"Operation of the order is stayed subject to the condition that petitioners will operate the bank accounts which are seized only for the purpose of meeting the expenses for carrying out the day-to-day activities of the company," the high court had said in its interim order, reported PTI.

The HC modified its order on 12 May, to allow the company to make overdrafts from banks to meet the said expenses. However, the court, on both occasions, strictly barred the company from transferring money for royalties to foreign companies.

(With inputs from PTI.)