Xiaomi accuses Indian agency: its executives were threatened with ‘violence’ during investigation

IT House reported on May 8 that earlier this month, Indian law enforcement authorities claimed that Xiaomi’s subsidiary violated the Foreign Exchange Management Act, illegally sent money to overseas institutions, and seized about 4.8 billion yuan in assets belonging to Xiaomi Technology India Private Limited.

The Bureau of Enforcement of India said that after finding that Xiaomi Technology India Private Limited had remitted foreign currency equivalent to 55.5 billion Indian rupees (about 4.806 billion yuan) to 3 overseas entities including Xiaomi Group in the name of paying copyright fees, The company’s bank account assets have been seized.

In this regard, Xiaomi India officially issued a statement saying: The company strictly abides by Indian laws, and the royalties paid are used for the licensed technology and intellectual property in Xiaomi India products. These royalties and bills are all legal and true. Xiaomi India is committed to working closely with government departments to clarify any misunderstandings.

Xiaomi filed a lawsuit in the High Court in the southern Indian state of Karnataka against the decision of India’s financial crime agency, Reuters reported on May 6. After hearing from Xiaomi’s lawyers, an Indian court lifted a federal agency’s $725 million freeze on Xiaomi.

Xiaomi said its top executives faced threats of “physical violence” when questioned by India’s financial crime-fighting agency, according to a new report from Reuters. According to the report, Xiaomi’s May 4 document said officials from the Indian Enforcement Service warned the company’s former India general manager Manu Kumar Jain (Manu Kumar Jain), current chief financial officer Samir BS Rao ( Sameer BS Rao) and their families face “dire consequences” if they don’t submit declarations as required by the agency.

According to Xiaomi, the company said its executives were intimidated by law enforcement agencies during multiple court appearances in April.Jenn and Rao have been “threatened…to face dire consequences, including arrest, compromised career prospects, criminal liability and physical violence, if they do not provide statements as required by the agency on certain occasions”.

Xiaomi also said that its executives “were able to resist the pressure for a while, (but) under such extreme and hostile abuse and pressure, they finally gave up and made some statements involuntarily.”

After the Reuters report was published, the Indian Bureau of Enforcement issued a statement saying Xiaomi’s allegations were “untrue and baseless” and that Xiaomi’s executives testified voluntarily “under the most favorable circumstances.” The Bureau of Enforcement of India also said they were a “professional body with a strong work ethic and there was no coercion or threat against company officials at any time”.

Xiaomi declined to comment, citing pending legal proceedings, and IT Home understands that the next hearing is scheduled for May 12.