Xiaomi’s accusations of coercion unfounded, says enforcement directorate
The Enforcement Directorate on Saturday rejected allegations that the statements of officials of Xiaomi India, a wholly owned subsidiary of Chinese mobile phone company Xiaomi, were recorded “under duress”, saying the allegations were a side issue.
The federal agency was responding to certain news reports that Xiaomi had alleged in a recent filing in the Karnataka High Court that its top executives were threatened with “physical violence and coercion” during their interrogation by investigators at the emergency department in Bengaluru.
The Enforcement Directorate (ED) said in a statement that it was “a professional agency with a strong work ethic and at no point was there any coercion or threat to the company’s officers”.
“The allegations that the statement of the Xiaomi India officials was coerced by ED are false and baseless,” the agency said. “The Xiaomi India officials voluntarily submitted their statements under FEMA before ED in the most conducive environment on several occasions,” the agency said.
According to the company, the statements were based on documents and information the company provided during the investigation.
“Their statements are consistent with the written answers submitted to the ED and with the material in the file,” the agency said.
The development comes against the backdrop of the Ministry of External Affairs on April 29 ordering attachment of Xiaomi India’s assets worth over Rs 5,551 crore for alleged violation of India’s Foreign Exchange Management Act.
The Karnataka High Court earlier this week stayed the ED order.
The agency added that the statement of Xiaomi’s global vice president Manu Kumar Jain was recorded four times — on April 13, April 14, April 21 and April 26 — while that of chief financial officer (CFO) Sameer BS Rao was recorded six times.
Rao’s statements were recorded on March 25, April 14, April 19, April 21, April 22 and April 26, the report said.
“However, at no point of time during the recording of statements on various occasions was any complaint made by them,” the report said. “The last statement of the company officials was recorded on 26.04.2022 and the seizure warrant was issued on 29.04.2022. It appears that the allegation made now after a considerable lapse of time is a side issue,” the report said.
The agency said Xiaomi’s allegations are “baseless and far from the facts”. Xiaomi is a marketer and distributor of mobile phones in the country under the MI brand name.
