ED denies having forced Xiaomi officials to give statements
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After the raid at Xiaomi India, the Enforcement Directorate denied the allegation that it coerced officials to give statements. The ED said the allegations by the Chinese company are "untrue and baseless".
The officials of Xiaomi India deposed their statements before ED under FEMA (Foreign Exchange Management Act) voluntarily in the most conducive environment on various occasions, said ED.
According to a Reuters report, the Chinese smartphone maker Xiaomi Corp had alleged its top executives faced threats of physical violence and coercion when ED officials interrogated them. According to a filing dated May 4, Xiaomi's former India Managing Director Manu Kumar Jain and current Chief Financial Officer Sameer BS Rao said they and their families will face "dire consequences" if they did not submit statements as per the demands of the ED.
The ED said today the statements were deposed by the officials based on the documents and information provided by Xiaomi officials during the course of the investigation, reported NDTV.
The probe agency reiterated that ED is a professional agency with strong work ethics and there was no coercion or threat to the officers of the company at any point in time. "Their statements corroborate with the written replies submitted to ED and the materials on record".
The ED had seized Rs 5,552.27 crore in Xiaomi Technology India Private Limited's bank accounts under the Foreign Exchange Management Act (FEMA) for illegal outward remittances. The company is accused of sending Rs 5,551 crores to its foreign parent companies to evade tax.
Hours after the action, the company said that it is committed to India and its operations, and is firmly compliant with local laws and regulations. Xiaomi said the actions taken by the ED are based on misunderstandings and the firm is working closely with the government authorities to clarify any misunderstandings.
After Xiaomi filed a challenge against the ED's action in Karnataka High Court, the seizure was put on hold on May 6. The next hearing will take place on May 12.