The Enforcement Directorate said on April 30 that it had seized Rs 5,551.27 crore from Xiaomi India, the local arm of the Chinese electronics giant, in connection with “illegal remittances by the company”. Federal investigators said in a statement that the seized items were withdrawn from the company’s bank account under the Foreign Exchange Management Act (FEMA).

The investigation into the alleged illegal remittance was launched in February this year, the ED said, adding: “The company remitted the equivalent of Rs 5,512.7 crore to three foreign entities, including one Xiaomi, under the guise of royalties. foreign currency. Group entity.”

The agency further noted that the amount remitted to “two other unrelated US entities” was also for “the ultimate benefit of Xiaomi Group entities.” Xiaomi India, the Indian distributor of Xiaomi-branded phones, started operations in the country in 2014 and has been sending money abroad since 2015, the ED said.

“Xiaomi India did not receive any services from the three foreign entities to which it transferred funds,” it claimed, adding that there were “various unrelated documents created in the name of the face between the group entities”, which were in the foreign Funds are remitted in the name of royalties. Violation of FEMA Section 4. “The company also provided banks with misleading information when sending money abroad,” the ED added.