The Xiaomi Business Group in India was recently caught in the forex violation and breaking foreign trade policies of India. The Enforcement Directorate of India had reportedly seized the local bank account of Xiaomi India and impose a seizure of a total of $725 Million or INR 5,570 crores. The central probe agency of India has confirmed the following news.
Xiaomi India’s executive threatened with physical violence
After the agency blamed the brand for violating foreign trade policies in India, a legal fight between the brand and the agency is going on in an Indian high court. In the last hearing of the court, the court ordered the Electorate Directorate of India to put the seizure on hold. Now after that, a court filing by the brand claims that Xiaomi India has accused India’s Enforcement Directorate of threats of “physical violence” and coercion.
According to the report, the brand’s executives have been threatened with physical violence. In detail, a few Enforcement Directorate officials had warned Xiaomi India’s former Managing Director, Manu Kumar Jain, and current Chief Financial Officer Sammer B.S. Rao, as well as their families, of dire consequences if they did not provide the agency with the requested statements. The Indian agency threatened the executives with dire consequences such as arrest, harm to their career prospects, criminal liability, and physical violence if they did not give statements in accordance with the agency’s directives.
In response to the report, the Enforcement Directorate has come forward and denied Xiaomi India’s claim. According to their statement, Xiaomi’s accusations were “untrue and baseless.” They went on to say that the company’s executives were deposed “voluntarily in the most conducive environment.” Following these accusations, China’s foreign minister spokesperson urged India to ensure a non-discriminatory business environment for Chinese firms.
