Xiaomi India executives threatened with ‘physical violence’ during investigation: report

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A court filing has surfaced in which the subsidiary of Chinese company Xiaomi India accused India’s Law Enforcement Directorate of threats of “physical violence” and coercion. A report has surfaced claiming that the Indian government agency made these threats during a series of interrogations. Also Read- Xiaomi Gets Relief as Karnataka High Court Stays ED Seizure of Rs 5,550 Crore

Reuters located the court filing which mentions the charges against the Indian agency. According to the report, a few officials from the Law Enforcement Branch had warned former Xiaomi India Managing Director Manu Kumar Jain and current CFO Sammer BS Rao and their families of dire consequences if they do not. did not provide the agency with the statements they wanted. The report suggests the filing was made last week, May 4. Read also – Mother’s Day 2022: Best tech gifts under Rs 5,000

The latest court filing said both leaders were “threatened… with dire consequences including arrest, damage to career prospects, criminal liability and physical violence if they fail to make statements in accordance with the dictates of” the agency. Also Read – World Asthma Day: Best Air Purifiers You Can Buy In India

He further stated that the leaders “were able to withstand the pressure for some time, (but) they finally caved under such extreme and hostile abuse and pressure and unwittingly made statements.” There is no clarity regarding the statements that would have been expelled from the company’s executives.

In response to the report, the Enforcement Branch came forward and dismissed Xiaomi India’s allegation. Their statement suggests that Xiaomi’s accusations were “false and baseless”. They went on to say that the company’s executives were dropped off “voluntarily in the most conducive environment.”

These charges come days after the Karnataka High Court suspended ED’s seizure of Rs 5,550 crore from Xiaomi India. The court allowed the company to use the money. However, certain conditions are attached to the leniency granted to the company. The amount can only be used for Xiaomi’s daily activities.

The Xiaomi investigation began earlier this year, in February. The ED claimed that the company was carrying out illegal fund transfers. The company was accused of remittances from the year 2015, just a year after entering the Indian market.

The company has categorically denied any wrongdoing on his part. Xiaomi India claims that its royalty payments and statements to the bank are legit. Their clarification states that these royalty payments made by Xiaomi India were for the licensed technologies and IP addresses used in their Indian version products.





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