Xiaomi alleges threats by ED to its senior officials

Two of Xiaomi Technology India Pvt Ltd. senior members have alleged that the Enforcement Directorate (ED) have threatened them and their families with grim consequences that include arrest, damage to career prospects, criminal liability, and physical violence.

The previous week Xiaomi Technology India Pvt. Ltd filed a writ petition at the Karnataka High court against the Enforcement Directorate. ED had seized over 5000 crores from the bank of Xiaomi Technology Pvt Ltd as the brand was accused of violating the provisions of the Foreign Exchange Management Act 1999. Advocates appearing on behalf of Xiaomi India contended that the company had not violated section 4 of the FEMA Act. Further, they said that the Tax department-approved these transactions and deductions were also made on them. They said that the transaction was for a value-added activity. The Karnataka High court put a stay on the order of ED and permitted the company to use the seized funds to carry out day-to-day activities only.