The Enforcement Directorate has seized ₹5,551.27 crore of Xiaomi Technology India Private Limited under the provisions of the Foreign Exchange Management Act (FEMA), in connection with the alleged illegal remittances made by the company.
Xiaomi India is wholly owned subsidiary of China–based Xiaomi group. “This amount was lying in the bank accounts of the company,” said an official.
According to the ED, the company launched its operations in India in 2014 and started remitting the money from next year. It sent foreign currency equivalent to ₹5,551.27 crore to three foreign–based entities, which include one Xiaomi group entity, in the guise of royalties.
