ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited

ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited The Enforcement Directorate (ED) seized Rs.5551.27 crore from M/s Xiaomi Technology India Private Limited's bank accounts on Saturday under the provisions of the Foreign Exchange Management Act, 1999, in connection with the company's illegal outward remittances, the probe agency said in a press release. The ED launched a probe into the company's alleged unlawful remittances in February of this year. "The Company established its operations in India in 2014 and began remitting funds in 2015. The Company has paid foreign currency equivalent to INR 5551.27 Crore to three foreign-based organisations, one of which is a Xiaomi group firm operating under the pretence of Royalty," the company claimed. "Such large sums in the name of royalties were remitted on the directions of their Chinese parent group organisations. The sum paid to other two unrelated US-based corporations was also for the ultimate benefit of the Xiaomi group entities," the ED noted.