ED rejects Xiomi’s allegations of coercion and threat during investigation

The Enforcement Directorate (ED) rejected allegations of physical violence and coercion levelled against it by Chinese smartphone maker Xiaomi Corp. on Saturday.

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The Enforcement Directorate (ED) rejected allegations of physical violence. And coercion levelled against it by Chinese smartphone maker Xiaomi Corp on Saturday.

“The allegations that the statement of the officials of Xiaomi India was taken. Under coercion by ED is untrue and baseless”. Said the central agency. “The officials of Xiaomi India deposed their statements. Before ED under FEMA voluntarily in the most conducive environment on various occasions”. It added.

The ED stated that they deposed Xiaomi’s statements. Based on documents and information provided by the company during the course of an investigation.

The agency stated that “their statements corroborate with the written responses submitted to ED and the material on record.”

ED rejects Xiomi’s allegations

It went on to say that Xiaomi global vice president Manu Kumar Jain’s statement was recorded four times. On April 13, 14, 21, and 26. And that chief financial officer (CFO) Sameer BS Rao’s statement was recorded six times.

Rao made statements on March 25, 14, 19, 21, 22, and April 26.

“However, they filed no complaint at any point in time during the recording of statements on various occasions,” ED said.

“Last statement of the officials of the company was recorded on 26.04.2022 and the seizure order was passed on 29.04.2022. It appears that allegation now made after passage of substantial time is an afterthought,” it added.

ED also said it was “a professional agency with strong work ethics and there was no coercion or threat to the officers of the company at any point of time”.

Rao made statements on March 25, April 14, 19, 21, 22, and 26.

“However, they filed no complaint at any point in time during the recording of statements on various occasions,” ED said.

The statement comes after Xiaomi claimed that its top executives were threatened while being questioned by ED investigators in Bengaluru.

Xiaomi has been the subject of an investigation since February. The ED issued an order last week to seize Xiaomi India’s funds worth over 5,551 crore for alleged violations of Indian foreign exchange law (Foreign Exchange Management Act).

This ED order was stayed earlier this week by the Karnataka High Court.
The company has denied any wrongdoing and stated that its royalty payments were legal.