ED issues notices to Xiaomi, 2 senior executives for FEMA 'violations' to tune of Rs 5,551 Cr
New Delhi, Jun 9 (PTI) The Enforcement Directorate (ED) on Friday said it has issued show-cause notices to the Indian arm of Chinese mobile phone manufacturer Xiaomi, its chief financial officer and director Sameer B Rao, former managing director Manu Kumar Jain and three foreign banks for alleged violations of the foreign exchange law to the tune of more than Rs 5,551 crore.
The Adjudicating Authority (of the Foreign Exchange Management Act) has issued the notices to Xiaomi Technology India Private Limited, the two executives, the CITIbank, the HSBC bank and the Deutsche Bank AG under section 16 of the FEMA, the federal agency said in a statement.
A show-cause notice is issued after the completion of a FEMA probe and once it is settled, the accused may have to pay a penalty that could be three times the amount contravened.
