Bangalore : The High Court of Karnataka has reserved judgment on the Enforcement Department’s (ED) seizure of Rs 5,551.27 crore from a bank account at the request of Chinese company Xiaomi.
Société Technologic Chinoise Fete à de des Ascensions of Violation de Disposition de la Roi sur la Jestion de Change. Bench headed by Judge SG Pandit has reserved the order to make a judgment on Wednesday.
Xiomi was represented by Senior Advocate S. Ganeshan and Sajan Poovaiah. Attorney General MB Nargund appeared for the central government and his ED.
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Attorneys for Xiaomi India claimed that the company was targeted because it is a Chinese company and other companies are allowed to pay for technology usage. They also reported to the court that the bank did not allow Xiaomi to send funds in foreign currency for imports.
They argued that the company would have to pay foreign firms for manufacturing and marketing smartphones.
Disputing this, Supplemental General Solicitor MB Nargund said the authorities would say nothing about whether Xiaomi kept the seized amount in a bank and agreed to use the remaining amount. explained.
He told the court that on April 24 and 29, before the ED issued an order to seize Xiaomi’s bank accounts, according to available information, he transferred about 150 billion rupees from the bank accounts of Xiaomi. reported.
However, Xiaomi claims that its royalty payments to the three foreign companies did not violate FEMA law. He further argued that computer services themselves approved it as a value-added activity.
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