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Xiaomi India executives threatened with ‘physical violence’ by govt agency: Report

Xiaomi India has equivocally denied any wrongdoing on its part. Xiaomi India claims its royalty payments and statements to the bank are legitimate. A court filing has surfaced in which Chinese company branch Xiaomi India has accused India’s Enforcement Directorate of threats of “physical violence” and coercion. A report has surfaced claiming that the Indian Govt agency made

  • Posted on 09th May, 2022 18:45 PM
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Xiaomi India executives threatened with ‘physical violence’ by govt agency: Report Image

A court filing has surfaced in which Chinese company branch Xiaomi India has accused India’s Enforcement Directorate of threats of “physical violence” and coercion. A report has surfaced claiming that the Indian Govt agency made these threats during a round of questioning. Also Read - Xiaomi gets relief as Karnataka High Court stays ED's seizure of Rs 5,550 crore

Reuters has spotted the court filing which mentions the accusations against the Indian agency. According to the report, a few officials from the Enforcement Directorate had warned Xiaomi India’s former Managing Director, Manu Kumar Jain, and current Chief Financial Officer Sammer B.S. Rao and their families of dire consequences if they do not provide the agency with the statements that they desired. The report suggests that the filing was done last week on May 4. Also Read - Mother's Day 2022: Best tech gifts under Rs 5,000

The latest court filing stated that both the executives were “threatened … with dire consequences including arrest, damage to the career prospects, criminal liability and physical violence if they did not give statements as per the dictates of” the agency. Also Read - World Asthma Day: Top air purifiers you can buy in India

It further stated that the executives “were able to resist the pressure for some time, (but) they ultimately relented under such extreme and hostile abuse and pressure and involuntarily made some statements.” There’s no clarity regarding the statements that were allegedly forced out of the company executives.

In response to the report, the Enforcement Directorate has come forward and denied the claim made by Xiaomi India. Their statement suggests that Xiaomi’s accusations were “untrue and baseless”. They further went on to claim that the executives of the company were deposed “voluntarily in the most conducive environment”.

These accusations come days after Karnataka High Court put a stay on the ED’s seizure of Xiaomi India’s Rs 5,550 crore. The court has allows the company to use the money. However, there are some conditions attached to the clemency given to the company. The amount can only be used for Xiaomi’s day-to-day activities.

The investigation on Xiaomi began earlier this year, in the month of February. The ED claimed that the company made illegal remittances. The company has been accused of remittances from the year 2015, just one year after it entered the Indian market.

The company has equivocally denied any wrongdoing on its part. Xiaomi India claims its royalty payments and statements to the bank are legitimate. Their clarification states that these royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in their Indian version products.

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