ED order to seize Rs 5.5K cr from Chinese mobile firm Xiaomi gets approval

FEMA, which checks foreign exchange violations, requires that the appeals against seizure orders be heard only by an authority appointed by the Centre

In a major setback for Xiaomi India, the Central government-appointed authority on Friday approved the seizure order of Rs 5,551.27 crore passed by the Enforcement Directorate (ED) against the Chinese mobile manufacturer in April this year.

To date this is India’s biggest seizure order under the Foreign Exchange Management Act (FEMA). The ED seized Xiaomi’s assets over allegations of making illegal payments to parties outside India in the guise of royalties.

“The FEMA authority, while confirming the seizure of Rs 5,551.27 crore, held that the ED was right in holding that foreign exchange equivalent to the amount had been transferred