Karnataka HC extends stay on ED order seizing Xiaomi India assets

Karnataka HC extends stay on ED order seizing Xiaomi India assets

Justice S G Pandit extended the stay till June 1, with the hearing of the case posted to that day

AgenciesUpdated: Monday, May 23, 2022, 04:40 PM IST
article-image
The ED froze Xiaomi's accounts on April 29 alleging that it has violated the Foreign Exchange Management Act (FEMA). /Karnataka HC | Photo: Representative Image

The Karnataka High Court on Monday extended the stay on the Enforcement Directorate's (ED) order of freezing Rs 5,551 crore in the bank accounts of Xiaomi India.

Justice S G Pandit extended the stay till June 1, with the hearing of the case posted to that day.

The ED froze Xiaomi's accounts on April 29 alleging that it has violated the Foreign Exchange Management Act (FEMA) by illegally transferring money abroad to three companies under the guise of royalty payments.

In an interim order on May 5, a vacation bench of the High Court stayed this order.

''Operation of the order is stayed subject to the condition that petitioners will operate the bank accounts which are seized only for the purpose of meeting the expenses for carrying out the day-to-day activities of the company,'' the HC said in its interim order on May 5.

Subsequently on May 12, the HC modified its interim order and allowed the company to draw overdraft from the banks to meet these expenses. However, on both the occasions, the company was expressly barred from using the money to pay royalty to companies outside India.

(With PTI inputs)

RECENT STORIES

Nvidia Becomes World's Most Valuable Company, Crosses $4 Trillion Market Value

Nvidia Becomes World's Most Valuable Company, Crosses $4 Trillion Market Value

Asian Paints Sells Entire 4.42% Stake For ₹734 Crore In Akzo Nobel India

Asian Paints Sells Entire 4.42% Stake For ₹734 Crore In Akzo Nobel India

Gold Tumbles ₹700 To ₹98,420/10g, Strong US Dollar & Fed Rate Worries Weigh

Gold Tumbles ₹700 To ₹98,420/10g, Strong US Dollar & Fed Rate Worries Weigh

Adani Enterprises ₹1,000 Crore Bond Issue Fully Subscribed, Investors Respond In Just Three Hours

Adani Enterprises ₹1,000 Crore Bond Issue Fully Subscribed, Investors Respond In Just Three Hours

Centre Tells Delhi High Court There's No Proposal To Issue ₹50 Coin Amid Plea Over Note's...

Centre Tells Delhi High Court There's No Proposal To Issue ₹50 Coin Amid Plea Over Note's...