ED questions Xiaomi world VP Jain in FEMA case

The Enforcement Directorate (ED) on Wednesday summoned Chinese cell firm Xiaomi’s world vice chairman, Manu Kumar Jain, for questioning in a case associated to alleged violations of the overseas change legislation by the corporate. Sources stated Jain was requested to look earlier than the investigating officer in Bengaluru, and was being questioned.

According to sources, the case is said to some overseas remittances made by the corporate to China via a 3rd nation in violation of RBI tips. “Around three years ago, the company made remittances to the tune of over Rs 3,000 crore in violation of the Foreign Exchange Management Act (FEMA). Accordingly, a case has been registered and the company is being investigated,” stated an ED official.

Sources stated Jain, who headed Xiaomi’s India operations till not too long ago, has been requested to furnish numerous monetary paperwork linked to the corporate. These embody paperwork associated to Xiaomi’s shareholding, supply of funds, vendor contracts, and funds made to Indian administration and despatched overseas.

A PTI report quoted a Xiaomi spokesperson as saying that they had been “a law abiding and responsible company”. “We give paramount importance to the laws of the land. We are fully compliant with all the regulations and are confident of the same. We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information,” the spokesperson stated.

Last December, the Income Tax Department carried out searches on the premises of Xiaomi and some different Chinese cell manufacturing firms for alleged tax evasion. The authorities has additionally banned some smartphone functions owned by Xiaomi on safety grounds.
Xiaomi has been main the Indian smartphone marketplace for the final a number of quarters. Despite a dip in shipments in India, the corporate secured 22 per cent market share within the fourth quarter of 2021 and maintained its lead.