New Delhi, Sep 30 (UNI) The Competent Authority appointed under Section 37A of the Foreign Exchange Management Act (FEMA) on Friday confirmed the seizure order of Rs 5551.27 crore passed by the Directorate of Enforcement (ED) against Xiaomi Technology India Private Limited under the provisions of FEMA, ED in a statement said on Friday.
“This is the highest amount of seizure order in India which has been confirmed by the Authority till date. The Authority while confirming the seizure of Rs 5551.27 crore, held that ED is right in holding foreign exchange equivalent to Rs 5551.27 crore has been transferred out of India by the Xiaomi India in an alleged unauthorised manner and is held outside India on behalf of the group entity is in contravention of Section 4 of the Foreign Exchange Management Act, 1999 and the same is liable to be seized in terms of provisions of Section 37A of the FEMA,” it stated.
“The Competent Authority also observed that payment of royalty is nothing but a tool to transfer the foreign exchange out of India and the same is in blatant violation of provisions of FEMA,” it added.