Untrue, baseless: ED dismisses Xiaomi’s claims of ‘physical violence’ threat during forex probe
India Today
Xiaomi alleged that the ED had used threats of “physical violence” against its top executives in India during questioning. ED called the allegation “untrue and baseless” and reiterated that “there was no coercion or threat to the officers of the company at any point of time.”
The Enforcement Directorate responded to Chinese smartphone maker Xiaomi allegations that its top executives faced threats of "physical violence" and coercion during questioning in connection with forex violation. Calling it “untrue and baseless”, ED said that “allegation now made after passage of substantial time is an afterthought.”
The ED had initiated an investigation against smartphone giant Xiaomi India under the provisions of Foreign Exchange Management Act (FEMA), 1999 in connection with the illegal remittances made by the company in February this year.
Xiaomi had denied any wrongdoing and claimed that all their operations are firmly compliant with local laws and regulations.
In a filing dated May 4, Xiaomi claimed that the officials from the Enforcement Directorate warned the company's former India managing director, Manu Kumar Jain, current Chief Financial Officer Sameer B.S. Rao, and their families of "dire consequences" if they did not submit statements as desired by the agency, as per report by Reuters.
Responding to Xiaomi’s claims, ED said, “The allegations that the statement of the officials of Xiaomi India was taken under coercion by ED is untrue and baseless. The officials of the Xiaomi India deposed their statements before ED under FEMA voluntarily in the most conducive environment on various occasions. The statements were deposed by them on the basis of documents/information provided by the company during the course of investigation. Their statements corroborate with the written replies submitted to ED and the materials on record.”
The agency stated that the statements of Manu Kumar Jain were recorded on April 13, 14, 21, 26 and statements of Sameer B S Rao were recorded on March 25, April 14, 19, 21, 22, and 26.
“However, no complaint was filed by them at any point of time during recording of statements at various occasions,” the agency stated.
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