New Delhi. India’s tough stand against China continues. Now in this episode, the Enforcement Directorate has seized Chinese company Xiaomi Rs 5,551 crore. The Directorate has taken the above action under the Foreign Exchange Management Act, (FEMA) 1999. ED has taken the above action in respect of illegal outward remittances made by the company. Let us tell you that in the month of February itself, the ED started this action against the Chinese company Xiaomi in the case of alleged illegal remittance. The company started its operations in India in the year 2015. From the same year, the company started sending money. It should be noted that the company has remitted foreign exchange equivalent to Rs 5551.27 crore to three foreign based entities, including a Xiaomi group entity, under the guise of royalty.
At the same time, it is believed that only after the instructions of the companies based in China, huge amounts were sent to the companies. On the other hand, ED, while giving detailed information regarding the above action, said that the Chinese company against whom the above action has been taken, is also active in the business of selling mobiles.
ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company.
— ED (@dir_ed) April 30, 2022
Explain that the ED has taken action against the company under the Foreign Exchange Management Act, 1999 (FEMA). Apart from this, the ED has accused the company of giving false information to remit money abroad. In this context, the ED has been investigating for the past several days and has also questioned many people.