Xiaomi India has no pact with Qualcomm, hence no question of royalties: ED

New Delhi: Xiaomi India does not have any pact with Qualcomm to pay royalties to the US chipmaker and thus can’t be making payments to that effect, the Enforcement Directorate (ED) argued on Tuesday.

The ED said the petition is not maintainable as Foreign Exchange Management Act (FEMA) acts as a court in itself and its orders cannot be challenged in courts that do not have jurisdiction.

The agency, which probes forex law violations, was objecting to the Chinese handset maker’s petition in the Karnataka High Court, challenging the ED order to freeze assets worth over Rs 5,500 crore for alleged FEMA violations.