The High Court of Karnataka has directed the competent authority (CA) set up under the Foreign Exchange Management Act (FEMA), 1999, to decide within 60 days on the issue of the correctness of the seizure of ₹5,551.27 crore in the bank accounts of Xiaomi Technology India Pvt. Ltd. for transferring crores of rupees to companies abroad as royalty in violation of the law.
Justice S.G. Pandit issued the direction while disposing of the petition filed by Xiaomi India, which is a wholly-owned subsidy of China-based Xiaomi group. The company had questioned April 29, 2022 provisional order passed by the Authorised Officer (AO) of the Enforcement Directorate (ED) seizing the amount in its bank accounts.
