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NEW DELHI: The Enforcement Directorate (ED) has summoned the worldwide vp of Chinese language cell manufacturing firm Xiaomi, Manu Kumar Jain, for questioning in a probe linked to alleged contravention of the overseas trade legislation, officers mentioned on Wednesday.
The federal probe company, based on sources, is investigating the corporate and its executives beneath the provisions of the International Trade Administration Act (FEMA).
Allegations associated to violation of foreign exchange legal guidelines within the Indian arm of the Chinese language firm over the previous couple of years are being investigated, they mentioned.
Jain, the previous India head of Xiaomi, has been requested to furnish some monetary paperwork linked to the corporate by showing in particular person on Wednesday or sending it by way of an authorised consultant.
Paperwork associated to Xiaomi’s shareholding, supply of funds, vendor contracts, and funds made to Indian administration and despatched overseas have been sought by the ED regional workplace situated in Bengaluru from Jain, who supervised its operations in India until not too long ago, they mentioned.
A Xiaomi spokesperson mentioned they have been “a legislation abiding and accountable firm.”
“We give paramount significance to the legal guidelines of the land. We’re absolutely compliant with all of the laws and are assured of the identical. We’re cooperating with authorities with their ongoing investigation to make sure they’ve all of the requisite info,” the spokesperson mentioned.
Proceedings beneath the FEMA are civil in nature and the ultimate penalty, submit adjudication, might be no less than 3 times the quantity contravened beneath the legislation.
Xiaomi and few different Chinese language cell manufacturing corporations have been raided by the Earnings Tax Division in December final 12 months on expenses of tax evasion.
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