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  4. Xiaomi again lands in trouble! ED show-cause notice to ex-MD Manu Jain over illegal remittances of Rs 5,551 cr

Xiaomi again lands in trouble! ED show-cause notice to ex-MD Manu Jain over illegal remittances of Rs 5,551 cr

Notices were sent to CFO Sameer Rao, former MD Manu Jain, and three banks for FEMA violation of Rs 5,551 crore on Friday.

Ajeet Kumar Edited By: Ajeet Kumar @Ajeet1994 New Delhi Updated on: June 09, 2023 20:40 IST
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In a major development, the Enforcement Directorate has issued a show cause notice to top Xiaomi Technology India officials. According to the news agency PTI, notices were sent to CFO Sameer Rao, former MD Manu Jain, and three foreign banks for alleged foreign exchange violations of more than Rs 5,551 crore.

“The Adjudicating Authority has issued SCN to Xiaomi Technology India, its officials and 3 banks under FEMA on the basis of a complaint filed by the ED with respect to illegal remittances made by the company to the tune of ₹5551.27 crores," according to the statement released by the Enforcement Directorate on Friday. 

3 banks are also involved: ED

The adjudicating authority under the Foreign Exchange Management Act has issued show-cause notices to Xiaomi Technology India Private Limited, the two executives, CITI Bank, HSBC Bank and Deutsche Bank AG, the agency said in a statement.

Under FEMA, a show-cause notice is issued after the completion of the ED investigation and once it is settled, an accused is required to pay penalty. 

Notably, this was not the first time when the Indian authorities were taking action against a major Chinese mobile manufacturing company. Earlier last year, ED seized funds worth INR 5,551.27 Cr from Xiaomi India, a fully-owned subsidiary of China-based Xiaomi group, under the provisions of the Foreign Exchange Management Act (FEMA), 1999.

(With inputs from agency)

Also Read: Xiaomi 14 series- Expected features and launch timeline

 

 

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