The Xiaomi Business Group in India was recently caught in the forex violation and breaking foreign trade policies of India. The Enforcement Directorate of India had reportedly seized the local bank account of Xiaomi India and impose a seizure of a total of $725 Million or INR 5,570 crores. After that, a legal despite is going on between the Enforcement Directorate of India and Xiaomi India.
The very first hearing of the case was made on May 7th, 2022. Where the high court has ordered the Enforcement Directorate to put the seizure on hold until the next hearing was made i.e. on May 12th, 2022. The second hearing has been done and no final judgement or conclusion has come out yet by the legal bodies of India.
ED of India ask the court to re-freeze the bank account of Xiaomi
In the first hearing, the court ruled in favour of Xiaomi India, ordering that the company’s account be unfrozen. The order was subject to certain conditions. The high court has now urged the Enforcement Directorate of India to re-freeze Xiaomi India’s bank account, despite the court’s order. The ED stated that they are conducting investigations into the fund transfers made by the Chinese company and that the bank account should be re-frozen as of now.
The high court has not yet issued a decision on the Enforcement Directorate of India’s request. The funds may be used for daily operations, business purposes, and other non-royalty payments by the firm. The third hearing is scheduled for May 23rd, 2022. The next hearing date has been rescheduled for May 23, according to Judge Siddappa Sunil Dutt Yadav.
The company recently accused the Enforcement Directorate of India of threatening them with physical violence. In detail, a few Enforcement Directorate officials had threatened Xiaomi India’s former Managing Director, Manu Kumar Jain, and current Chief Financial Officer Sammer B.S. Rao, as well as their families, with dire consequences if they did not provide the requested statements. The high court’s final decision will ensure that the law is followed correctly and without bias.