In a major development, the Enforcement Directorate has issued show cause notices to top executives of Xiaomi Technology India. According to news agency PTI, notices were sent to CFO Sameer Rao, former MD Manu Jain and three foreign banks in connection with alleged foreign exchange violations of over Rs 5,551 crore.
“The Adjudicating Authority has issued SCNs to Xiaomi Technology India, its officials and 3 banks under FEMA on the basis of a complaint filed by ED in respect of illegal remittance of ₹ 5551.27 crore by the company,” as per The Enforcement Directorate released the statement on Friday.
3 banks also included: ED
The agency said in a statement that the judicial authority under the Foreign Exchange Management Act has issued show-cause notices to two officials of Xiaomi Technology India Private Limited, CITI Bank, HSBC Bank and Deutsche Bank AG.
Under FEMA, a show cause notice is issued after the ED’s investigation is complete and once it is settled, the accused has to pay the fine.
Notably, this was not the first time that Indian authorities were taking action against a major Chinese mobile maker. Early last year, the ED had seized funds worth Rs 5,551.27 crore from Xiaomi India, a wholly owned subsidiary of China-based Xiaomi Group, under the provisions of the Foreign Exchange Management Act (FEMA), 1999.
(with inputs from agencies)
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