Xiaomi gets relief as Karnataka High Court stays ED’s seizure of Rs 5,550 crore

Xiaomi India has received some clemency from Karnataka High Court in the ongoing investigation under which ED seized over Rs 5,500 crore worth of assets from the company. The court has put a stay on the freeze. Xiaomi India will be able to use the funds on the condition that it is used just for day-to-day activities. The next hearing will happen on May 12.

Last week, ED seized Rs 5,551 crore worth of deposits from the company. The ED cited illegal remittances made by the company in the month of February this year. According to the allegations of the ED, Xiaomi had started operations in India from 2014 and it started remitting money from the year 2015.

The ED claimed that the Chinese company had remitted foreign currency worth Rs 5551.27 crore to three foreign-based entities which also includes from Xiaomi group entity in the guise of Royalty. ED further claimed that the remittances happened in the name of Royalties and that the instructions for these operations came from the Chinese parent group. ED stated that the other two companies, which were US-based, were receiving the remitted amount which was ultimately benefiting Xiaomi.

In response to the allegations, Xiaomi released a statement saying, “We have studied the order from government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with government authorities to clarify any misunderstandings.”

 

The post Xiaomi gets relief as Karnataka High Court stays ED’s seizure of Rs 5,550 crore appeared first on BGR India.

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