The statement said that under the Foreign Exchange Management Act, the judicial authority has issued show cause notices to two officials of Xiaomi Technology India Private Limited, CITI Bank, HSBC Bank and Deutsche Bank AG.
New Delhi: The ED has issued a show cause notice to Xiaomi Technology India Private Limited, its officials and three banks over alleged violations of Indian foreign exchange laws involving transactions worth Rs 5551.27 crore. The agency said in a statement that under the Foreign Exchange Management Act, the judicial authority has issued show cause notices to two officials of Xiaomi Technology India Private Limited, CITI Bank, HSBC Bank and Deutsche Bank AG.
The probe agency had attached funds to the tune of Rs 5,551.27 crore of Xiaomi Technology India Private Limited lying in its bank accounts under FEMA for “unauthorised” transactions of this amount in foreign countries in the guise of royalty.” u/s 37A of FEMA. The officer has confirmed the said confiscation order.
The Adjudicating Authority has issued SCN to Xiaomi Technology India Private Limited, its officials and 3 banks under FEMA on the basis of complaint filed by the ED with respect to illegal remittances made by the company to the tune of Rs.5551.27 Crore.
— ED (@dir_ed) June 9, 2023
According to the investigating agency, foreign exchange equivalent to Rs 5,551.27 crore has been transferred outside India by Xiaomi India in an unauthorized manner and in violation of the law. It can be confiscated under the provisions of section 37A of FEMA.
Under FEMA, a show cause notice is issued after the ED completes its investigation and once it is settled, the accused has to pay the penalty. The authorities have given this information to sources.
