Xiaomi’s former India head, Manu Kumar Jain, was summoned and questioned as part of the directorate’s investigation
The Karnataka High Court has put the Enforcement Directorate (ED) decision to seize $725 million from local bank accounts of China’s Xiaomi Corp for suspected violations of foreign exchange laws on hold, as per reports.
As per a Reuters report, a judge put a hold on the Enforcement Directorate’s decision after hearing Xiaomi’s lawyers.
The Enforcement Directorate seized the bank assets of Xiaomi Technology India Private Limited, saying it had found the company illegally remitted funds to three foreign-based entities, including one Xiaomi group entity, “in the guise of royalty” payments.
Xiaomi had denied any wrongdoing, saying its “royalty payments and statements to the bank are all legit and truthful”. It later filed a challenge against the Indian financial crime fighting agency’s decision in the High Court.
Xiaomi’s former India head, Manu Kumar Jain, was summoned and questioned as part of the directorate’s investigation.
The relief was granted on the condition that Xiaomi will inform Indian authorities of fund transfers such as royalty payments, the publication added.
The case will next be heard on May 12, according to the Indian court’s website. Xiaomi was India’s leading smartphone seller in 2021, with a 24% market share, according to Counterpoint Research.