The Karnataka High Court on Thursday reserved its judgement on Chinese know-how agency Xiaomi’s plea in FEMA case. Electronic machine producer agency challenged the order handed by the Enforcement Directorate (ED), seizing Rs 5,551 crore in its bank accounts for alleged violation of FEMA guidelines.
Justice M Nagaprasanna concluded the listening to of arguments in the present day and reserved the judgement.
Xiaomi Technology India Pvt Ltd filed the petition on October 3, challenging a September 29 order of the Competent Authority appointed below the Foreign Exchange Management Act (FEMA), which confirmed the April 29 seizure order of the ED to freeze the quantity in the corporate’s bank accounts.
The ED had earlier this 12 months ordered the seizure of Rs 5,551.27 crore in the bank accounts of Xiaomi for allegedly violating FEMA guidelines and transferring cash in the guise of royalty to three firms exterior India, in the USA and China.
The firm had moved the excessive court docket earlier this 12 months towards this order. However, the court docket had ordered it to strategy the Competent Authority below FEMA.
When the competent authority upheld the ED order, Xiaomi approached the HC once more. Xiaomi claimed that the Competent Authority didn’t enable a consultant of a international bank to examined throughout the listening to.
The firm in the brand new petition has additionally challenged the validity of the Section 37-A of FEMA, which relates to belongings held exterior India by an organization integrated in India.
The ED has claimed that there was solely Rs.1,900 crore in the accounts of Xiaomi now from the sooner Rs.
5551.27 crore.
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