Karnataka HC declines relief to Xiaomi India over Rs 5,551-cr asset freeze

In a setback for Xiaomi, the Karnataka High Court on Thursday refused to stay FEMA competent authority’s confirmation of the Enforcement Directorate’s (ED) order to seize Xiaomi India’s bank assets worth over Rs 5551.27 crore.

The competent authority, formed under the Foreign Exchange Management Act, 1999 (FEMA), confirmed the order of the ED to seize the assets of the smartphone company on September 19.

The competent authority said the company had transferred the mentioned amount in an unauthorised manner and that its actions violate Section 4(dealing with the holding of foreign exchange, etc) of FEMA.