High Court Upholds Rs 5,551 Crore Seizure From Xiaomi For Forex Violation
NDTV
The Enforcement Directorate (ED) seized the amount from the company's account and this was upheld by the Competent Authority.
The High Court of Karnataka on Friday upheld the seizure of Rs 5,551.27 crore from Xiaomi India for violation of the Foreign Exchange Management Act (FEMA).
The Enforcement Directorate (ED) seized the amount from the company's account and this was upheld by the Competent Authority. Xiaomi had challenged the Competent Authority's order in the HC.
On Friday, Justice M Nagaprasanna dismissed the petition holding that it was valid under Section 37 A of FEMA. However, liberty was granted to Xiaomi to approach the Appellate Tribunal and challenge the Competent Authority's order under Section 37A(5).
The ED had in 2022 ordered the seizure of Rs.5,551.27 crore in the accounts of Xiaomi for allegedly violating FEMA rules and transferring money in the guise of royalty to three companies outside India; two in the USA and one in China.
