Why did the trouble increase on Xiaomi? This is why ED served notice to Chinese smartphone company

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Xiaomi FEMA ED Notice Chinese mobile phone manufacturer Xiaomi, its chief financial officer (CFO) and director Sameer B Rao, former managing director (MD) Manu Kumar Jain and three foreigners in a foreign exchange law violation case of over Rs 5,551 crore by the Enforcement Directorate (ED). Show cause notices have been sent to the banks.

According to the information given by the financial probe agency, the Adjudicating Authority of Foreign Exchange Management Act (FEMA) has sent notices under section 16 of FEMA to Xiaomi Technology India Private Limited, two of its officers, Citibank, HSBC Bank and Dutch Bank AG. Are.

A show cause notice is issued after the investigation of a FEMA case is completed and when the case is disposed of, the accused may have to pay a fine of up to three times the amount of the contravention. The investigating agency said that along with Xiaomi, this notice has also been sent to Jain and Rao.

The Enforcement Directorate has said that Xiaomi India was sending money to its parent company from the year 2015 and in the investigation of the case, it has been found that Xiaomi India started sending this money only a year after it started working in India from the year 2014. Had done it.

The ED had earlier attached Rs 5,551.27 crore deposited in the bank accounts of Xiaomi Technology India Pvt Ltd in connection with illegal remittances. Let us tell you that Chinese company Xiaomi has been making and selling smartphones in India for a long time. Till now most of the parts used to come from China or other countries. Now the situation is about to change. Xiaomi will now buy parts equal to about 50 percent of the cost of its phones from India. (with language input)

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