Lagatar24 Desk
New Delhi, May 7: The Enforcement Directorate reacted to reports that Xiaomi’s top executives were threatened with “physical violence” and coercion during questioning in connection with a forex violation.
“Allegation now made after passage of substantial time is an afterthought,” ED stated, calling it “untrue and baseless.”
In February this year, the ED launched an investigation into Xiaomi India under the terms of the Foreign Exchange Management Act (FEMA), 1999, in relation with the company’s unlawful transfers.
Xiaomi has denied any wrongdoing and claims that all of its operations adhere to local laws and regulations.
According to Reuters, Xiaomi’s former India managing director Manu Kumar Jain, current Chief Financial Officer Sameer B.S. Rao, and their families were warned by Enforcement Directorate officials of “dire consequences” if they did not submit statements as requested by the agency in a filing dated May 4.
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Reacting to Xiaomi’s allegations, ED said, “The allegations that the statement of the officials of Xiaomi India was taken under coercion by ED is untrue and baseless. The officials of the Xiaomi India deposed their statements before ED under FEMA voluntarily in the most conducive environment on various occasions. The statements were deposed by them on the basis of documents/information provided by the company during the course of investigation. Their statements corroborate with the written replies submitted to ED and the materials on record.”
Manu Kumar Jain’s testimonies were recorded on April 13, 14, 21, and 26 and Sameer B S Rao’s statements were recorded on March 25, April 14, 19, 21, 22, and 26.
“However, no complaint was filed by them at any point of time during recording of statements at various occasions,” the agency stated.
“Last statement of the officials of the company was recorded on 26.04.2022 and the seizure order was passed on 29.04.2022. It appears that allegation now made after passage of substantial time is an afterthought. The allegations are baseless and far from the facts,” ED said.
“There was no compulsion or threat to the officers of the company at any point in time,” the agency added.
