According to the ED, the greatest amount of deposits frozen in India till date, totalling over Rs 5,551 crore, have been ordered seized by the competent authority under the Foreign Exchange Management Act (FEMA).
As required by the law governing foreign exchange crimes in the nation, the Enforcement Directorate (ED) had issued the order of seizure on April 29 under the FEMA and then sent it for confirmation to the appropriate authorities.
According to a statement from the federal government, Xiaomi Technology India Private Ltd. has been the target of the order issued under section 37A of the FEMA.
The authority has certified that this is the largest seizure order in India to date.
“The authority, while confirming the seizure of Rs 5,551.27 crore, held that ED is right in holding that foreign exchange equivalent to Rs 5,551.27 crore has been transferred out of India by Xiaomi India in an unauthorised manner and is held outside India on behalf of the group entity in contravention of Section 4 of the FEMA,” the agency said.
The responsible body further noted that paying royalties is nothing more than a means of transferring money out of India, and that this is a “blatant breach” of FEMA’s rules.
Under the brand name MI, Xiaomi sells and distributes mobile devices throughout the nation. Xiaomi India is a fully owned subsidiary of the Chinese company Xiaomi Group.