The Enforcement Directorate (ED) seized Rs 5551.27 crore from telecom firm Xiaomi India’s bank accounts on Saturday under the provisions of the Foreign Exchange Management Act, 1999, in connection with the company’s illegal outward remittances, the probe agency said in a press release.
The ED launched an investigation in February this year into alleged illegal remittances made by M/s Xiaomi Technology India Private Limited, a wholly owned subsidiary of the China-based Xiaomi group. “The company began operations in India in 2014 and began remitting funds in 2015.” The Company has transferred foreign currency worth INR 5551.27 crore to three foreign-based entities, one of which is a Xiaomi group entity.
“Such large sums in the name of royalties were remitted on the instructions of their Chinese parent group entities.” The money sent to two unrelated entities in the United States was also for the benefit of the Xiaomi group entities, according to the ED.
