ED confiscates more than Rs 5,000 crore from Xiaomi for forex violation

On charges of foreign exchange crimes, the Directorate of Enforcement (ED) has confiscated more than Rs 5,000 crore from Xiaomi.

Xiaomi India is a subsidiary of the Xiaomi Group, which is based in China. According to sources, the ED seized Rs 5,551.27 crore from the company's bank accounts.

The funds were seized in accordance with the Foreign Exchange Management Act of 1999. It should be noted that the ED launched an investigation into the company's alleged unlawful remittances in February of this year.

The ED said, “The company started its operations in India in 2014 and started remitting the money in 2015. It has so far remitted foreign currency equivalent to Rs 5,551.27 crore to three foreign-based entities, which include one Xiaomi group entity, in the guise of royalty.”