A Division Bench of the High Court of Karnataka on Wednesday ordered the issue of notice to the Central government on an appeal filed by Xiaomi Technology India Pvt. Ltd. challenging the single judge verdict upholding the constitutional validity of Section 37A of the Foreign Exchange Management Act (FEMA), 1999.
The Bench comprising Chief Justice Prasanna B. Varale and Justice M.G.S. Kamal, which heard preliminary submissions on the appeal, adjourned further hearing till July 11.
The single judge on April 21 rejected the company’s contention and said that Section 37A, which empowers the Enforcement Directorate (ED) to seize in India assets equivalent to any foreign exchange, foreign security or any immovable property held outside India in violation of FEMA, is constitutionally valid.
