K’taka HC upholds seizure of Rs 5,551 crore from Xiaomi for FEMA violation

The High Court of Karnataka on Friday upheld the seizure of Rs 5,551.27 crore from Xiaomi India for violation of the Foreign Exchange Management Act (FEMA).

The Enforcement Directorate (ED) had seized the amount from the company’s account and this was upheld by the Competent Authority.

Xiaomi had challenged the Competent Authority’s order in the HC. On Friday, Justice M Nagaprasanna dismissed the petition holding that it was valid under Section 37 A of FEMA.

However, liberty was granted to Xiaomi to approach the Appellate Tribunal and challenge the Competent Authority’s order under Section 37A(5).