Tuesday, June 18, 2024

Latest Posts

ED Issues Notice to Chinese Firm Xiaomi in ₹5,551 Crore Scam Case, Potential Triple Fine Imposed

Delhi: A significant action has been taken on Xiaomi by the Enforcement Directorate (ED) in a scam of foreign exchange law violations. The agency has sent show cause notices to Chinese mobile phone maker Xiaomi, its CFO and director Sameer B Rao, former MD Manu Kumar Jain and three foreign banks in the Foreign Exchange Act violation case of over Rs 5,551 crore. The investigating agency gave this information in a statement on Friday. Accordingly, the Adjudicating Authority of the Foreign Exchange Management Act (FEMA) under Section 16 of FEMA has issued notices to Xiaomi Technology India Private Limited, two of its executives, Citi Bank, HSBC Bank and Deutsche Bank AG. AG) have sent notices.

After an investigation has been completed, a show cause notice may be issued and when the case is disposed of, the accused may be required to pay a fine of up to three times the amount involved. According to the probe agency, Jain and Rao also received notices along with Xiaomi. In an illegal money laundering scam case, the ED had previously attached Rs 5,551.27 crore deposited in the bank accounts of Xiaomi Technology India Pvt Ltd. Mobile phone sales are dominated by Chinese companies. Huawei, Oppo, Xiaomi, and Vivo are some of these companies. In India, these companies earn with both hands but do not pay even a penny in taxes. The government has launched a detailed multi-agency probe to expose the racketeering of these companies. In this, the exploits of these companies are coming to the fore.

Xiaomi made 2 scam

Chinese companies are accused of hiding information about their income, not reporting profits to avoid tax, and using their dominance in the Indian market to destroy the domestic industry.

Along with this, Chinese companies are also accused of not being transparent in taking components and distribute of products. The government is probing all possible issues. Ministry of Electronics and IT is also keeping a close watch on this.

Latest Posts


Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.