The Enforcement Directorate (ED) on Saturday seized Rs 5551.27 crore from China’s Xiaomi for â€˜illegal outward remittancesâ€™.
â€œED has seized Rs.5551.27 Crore of Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the companyâ€ ED said in its Twitter post.
The money was seized under the provisions of Foreign Exchange Management Act, 1999 (FEMA) after a probe was launched by the federal agency against the company in connection with alleged illegal remittances sent abroad by the Chinese firm in February.
In a statement, ED said, â€œThe company started its operations in India in the year 2014 and started remitting the money from the year 2015. The company has remitted foreign currency equivalent to INR 5551.27 crore to three foreign-based entities which include one Xiaomi group entity in the guise of Royalty. Such huge amounts in the name of Royalties were remitted on the instructions of their Chinese parent group entities. The amount remitted to other two US-based unrelated entities was also for the ultimate benefit of the Xiaomi group entities.â€
The company has remitted foreign currency equivalent to Rs 5,551.27 crore to three foreign-based entities which include one Xiaomi group entity, in the guise of royalty.