Xiaomi has violated India's FEMA, according to the Enforcement Directorate
India's Enforcement Directorate just issued a show cause order to Xiaomi Technology India Ltd and three foreign banks - Citi bank, HSBC Bank and Deutsche Bank AG. An order to show cause is the type of court order that requires one or more parties to prove or disprove something to the court. In this case, it's about a Foreign Exchange Management Act violation amounting to the equivalent of $676 million.
The actual violation is by Xiaomi, but the banks listed above received their orders as well since they have a role in the violation. According to ED, the banks allowed foreign remittances without obtaining any Technical Collaboration Agreement.
The issue dates back to 2022 when the Indian government seized the equivalent of $6.7 million from Xiaomi India's bank accounts due to illegal outflow of capital. After the ED carried out an investigation, it was concluded that Xiaomi India transferred foreign exchange out of the country and held it there on behalf of the group entity. This is in direct violation of section 4 of the FEMA, 1999.
Reader comments
Yes, and that's it. The problem with the functions you want is that everyone charges the phone so everyone wants to do it quickly but hardly anyone uses the sd card or the radio
- 17 Jun 2023
- 6wy
- Anonymous
So what ? If every one of the population in my country -total 1.3 millions - give me a 33 cent. for free then I will have a little less than half a million.
- 13 Jun 2023
- SXp
Even if. 676 million is 1/3 of Indian population in other words is laughable 33 cents per person .
- 13 Jun 2023
- Lfw