Manu Kumar Jain, the worldwide vice-president of Chinese cell manufacturing firm Xiaomi, on Wednesday appeared earlier than the Enforcement Directorate in reference to a probe linked to alleged contravention of the overseas change regulation, officers mentioned.
The federal probe company, in keeping with sources, is investigating the corporate and its executives underneath the provisions of the Foreign Exchange Management Act (FEMA) associated to overseas remittances price crores of rupees remodeled the previous few years.
Jain, the previous India head of Xiaomi, was questioned concerning the India operations of the corporate and his assertion was recorded at ED’s Bengaluru zonal workplace, they mentioned.
He was requested to furnish quite a few monetary paperwork linked to the corporate which, sources mentioned, have been submitted.
Documents associated to Xiaomi’s shareholding, supply of funds, vendor contracts, and funds made to Indian administration and despatched overseas had been sought by the ED from Jain, who supervised its operations in India until not too long ago, officers mentioned.
A Xiaomi spokesperson mentioned they had been “a law abiding and responsible company”, when requested concerning the ED discover to Jain.
“We give paramount importance to the laws of the land. We are fully compliant with all the regulations and are confident of the same. We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information,” the spokesperson mentioned.
Proceedings underneath the FEMA are civil in nature and the ultimate penalty, put up adjudication, may be not less than thrice the quantity contravened underneath the regulation.
Premises of Xiaomi and few different Chinese cell manufacturing firms had been raided throughout the nation by the Income Tax Department in December final yr on fees of tax evasion.
The authorities has additionally banned some smartphone purposes owned by Xiaomi on safety grounds.
Xiaomi has been main the Indian smartphone marketplace for the final a number of quarters. Despite a dip in smartphone shipments in India, the corporate secured 22 per cent market share within the fourth quarter of 2021 and has maintained its lead.
Source: www.financialexpress.com”