ED Issues Show-cause Notice To Xiaomi India’s CFO & 3 Banks In Rs 5,551 Cr Fema Case

The ED has issued a show-cause notice to Xiaomi Technology India, CFO Sameer Rao, former MD Manu Jain and three banks for a Rs 5,551 crore Fema violation, according to a PTI report.  

As per the officials, the warning was issued in connection with the company’s unlawful remittances of Rs 5551.27 crore. 

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

The competent authority, appointed in accordance with Section 37A of the Fema, has confirmed the aforementioned seizure order.

“The authority, while confirming the seizure, held that the ED is correct in holding that foreign exchange equivalent to Rs 5,551.27 crore has been transferred out of India in an unauthorised manner by Xiaomi India and is held outside India on behalf of the group entity in contravention of Section 4 of Fema and the same is liable to be seized in terms of Section 37A of the Fema,” it said.