The Enforcement Directorate (ED) on Friday said it had issued show cause notices to the Indian arm of Chinese mobile phone manufacturer Xiaomi, its chief financial officer and director Sameer B. Rao, former managing director Manu Kumar Jain and three foreign banks for alleged violations of the foreign exchange law to the tune of more than ₹5,551 crore.
The adjudicating authority (of the Foreign Exchange Management Act or FEMA) had issued the notices to Xiaomi Technology India Private Ltd., the two executives, the Citibank, the HSBC bank and the Deutsche Bank AG under Section 16 of the FEMA, the federal agency said in a statement.
A show cause notice is issued after the completion of a FEMA probe and once it is settled, the accused may have to pay a penalty that could be three times the amount contravened.
