India seeks to bring back block on $725 countless Xiaomi’s bank assets
MUMBAI: The enforcement directorate asked a court on Thursday to re-instate a freeze on $725 million in the Indian checking account of Xiaomi Corp as it investigates fund transfers by the Chinese mobile phone giant.
The enforcement directorate had seized the money stating Xiaomi had actually unlawfully transferred funds abroad to 3 entities, including one in the Xiaomi group, describing them as payments “in the guise of royalty”.
However the high court in the southern state of Karnataka put that decision on hold after Xiaomi challenged it, saying all the royalty payments were legitimate. find out more
The hold choice would continue for now, a judge of the exact same court stated on Thursday, including that the agency would make an official request later in the day to bring back the freeze.
“The matter requires more hearing,” included the judge, Siddappa Sunil Dutt Yadav, who set the next hearing for May 23.
A representative for Xiaomi did not immediately react to an ask for remark.
Xiaomi’s legal representatives told the court that banks were not permitting the company to make essential payments, even though the court had actually enabled it to use funds for purposes other than royalty payments.
On Thursday, the judge allowed Xiaomi to utilize a bank overdraft center for such payments.
The agency’s relocation comes after Xiaomi stated in a court filing that its top executives faced dangers of “physical violence” and browbeating during questioning by enforcement officials, contentions that the company has dismissed as false.
Published at Thu, 12 May 2022 17:35:24 +0000
