Last April, the Competent Authority appointed under the FEMA seized INR 5,551.27 Cr from Xiaomi for violating FEMA guidelines
The company has maintained that its royalty payments, which the ED alleges were done to evade taxes, were all legitimate
FEMA had confirmed the seizure, India’s largest-ever, in September 2022, and the matter has been sub-judice in the Karnataka High Court
The Karnataka High Court has denied Xiaomi’s attempt to challenge the seizure of INR 5,551 Cr ($676 Mn) by Indian authorities for violating FEMA guidelines.
A Xiaomi spokesperson informed Reuters, “We are studying the matter and waiting for the written order”, adding the Chinese smartphone maker’s operations in India are compliant with local laws and regulations.”