Xiaomi alleges threats to its senior officials by Enforcement Directorate

Allegations come after Xiaomi approached the Karnataka HC wherein it filed a petition against the probe agency after ED seized 5,551 crores from their bank account under the provisions of Foreign Exchange Management Act 1999
MUMBAI : Xiaomi Technology India Pvt Ltd’s legal representatives have alleged that Manu Kumar Jain, former India Managing Director and Sameer Rao, chief financial officer along with their families have been threatened with dire consequences including arrest, damage to career prospects, criminal liability and physical violence by the Enforcement Directorate, a petition said.
This comes after Xiaomi Technology India Pvt Ltd approached the Karnataka High Court wherein it filed a petition against the probe agency after ED in the last week, seized 5,551 crores from bank account of Xiaomi Technology Pvt Ltd under the provisions of Foreign Exchange Management Act 1999. It seized the said amount from Xiaomi in connection with illegal outward remittances made by the company.
Consequent to which, the High Court of Karnataka , however, provided a partial relief to Xiaomi Technology India Private Limited by staying the April 29 order of the Enforcement Directorate (ED) by which 5551.27 crore of the company was seized under the provisions of the Foreign Exchange Management Act,1999.
Last week on 30 April summons were issued to the company and its senior executives including Rao. Similar summons were issued in March to the company.
In order to duly comply with the summons Rao appeared before the ED and submitted requisite information and necessary documents while he was subjected to questioning.
The duo alleged intimidation by the probe body when the appeared for questioning multiple times in April.
As per the petition, counsel on behalf of company, stated that whenever Jain and Rao appeared during the investigation they have submitted voluminous documents and information in compliance with the ED’s requisition.
Despite full co-operation, on certain occasions both Jain and Rao along their families and relatives were asked to provide financial details (which Jain had provided)and threatened of dire consequences including arrest, criminal liability and physical violence if they refused to give statements as directed by the probe agency.
The duo however, after resisting pressure for some time ultimately relented under extreme and hostile abuse and pressure and involuntarily made some statements as per the EDs direction, the petition stated.
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