Chinese mobile manufacturer Xiaomi has rejected speculations over moving its operations from India to Pakistan after the Enforcement Directorate froze its assets worth ₹5,551.27 crore for allegedly violating Foreign Exchange Management Act guidelines.
A tweet by South Asia Index while citing sources had claimed that the Chinese mobile maker may move its operations from India to Pakistan after its assets worth $676 million were frozen.
“This tweet is completely false & baseless. Xiaomi entered India in 2014 & in less than a year, we embarked on our Make in India journey. 99% of our smartphones & 100% of our TVs are made in India. We’ll take all measures to protect our reputation from false & inaccurate claims”, Xiaomi tweeted in response.
The Chinese mobile manufacturer on Friday approached the Karnataka high court again, challenging the September 29 order of the FEMA competent authority which had confirmed the April 29 seizure order of the ED to freeze its assets. The central probe agency had ordered the seizure of assets for allegedly violating FEMA rules and transferring money in the guise of royalty to three companies outside India.
In its petition, the Chinese mobile phone maker has challenged the appellate order on grounds that representative of a foreign bank was not allowed to be examined during the hearing.
Xiaomi’s lawyer argued that since the plea also challenged the validity of Section 37A of FEMA relating to the assets held outside India by a company, the petition was maintainable.
The high court earlier this year had allowed the mobile maker to use the money for its day-to-day activities but had prohibited it to use to make payment of the royalties.
(With Reuters, PTI inputs)
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