FEMA violation: Karnataka HC reserves verdict on Xiaomi plea
Bengaluru, Nov 17: The Karnataka High Court has reserved its judgement on the plea filed by Chinese technology firm, Xiaomi challenging the order passed by the Enforcement Directorate (ED), seizing Rs 5,551 crore in its bank accounts for alleged violation of FEMA rules.
Justice M Nagaprasanna concluded the hearing of arguments today and reserved the judgement.
Xiaomi Technology India Pvt Ltd filed the petition on October 3, challenging a September 29 order of the Competent Authority appointed under the Foreign Exchange Management Act (FEMA), which confirmed the April 29 seizure order of the ED to freeze the amount in the company's bank accounts.
The ED had earlier this year ordered the seizure of Rs.5,551.27 crore in the bank accounts of Xiaomi for allegedly violating FEMA rules and transferring money in the guise of royalty to three companies outside India, in the USA and China.
The company had moved the high court earlier this year against this order. However, the court had ordered it to approach the Competent Authority under FEMA.
When the competent authority upheld the ED order, Xiaomi approached the HC again.
Xiaomi claimed that the Competent Authority did not allow a representative of a foreign bank to examined during the hearing.
The company in the new petition has also challenged the validity of the Section 37-A of FEMA, which relates to assets held outside India by a company incorporated in India.
The ED has claimed that there was only Rs.1,900 crore in the accounts of Xiaomi now from the earlier Rs.5551.27 crore.
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Minister Parameshwara says remarks on properties linked to drug peddlers 'misunderstood'
Tumakuru (PTI): Karnataka Home Minister G Parameshwara on Saturday said his recent remarks on the demolition of properties linked to those involved in narcotics trade were "misunderstood and misinterpreted".
His clarification follows remarks made two days ago on the government's uncompromising crackdown on the drug menace, including action against properties linked to foreign nationals allegedly involved in drug trafficking.
"It is unfortunate. It is taken in the wrong sense. I didn't mean that tomorrow itself I am going to send bulldozers and demolish the houses. That was not my intention. It was wrongly taken," he told reporters here.
Responding to Congress MLC K Abdul Jabbar's question in the legislative council on the growing drug menace in Bengaluru, Davangere and coastal districts, the minister on Thursday detailed the extensive enforcement measures initiated since the Congress government assumed office.
Pointing to the involvement of some foreign nationals, the minister had said, "Many foreign students from African countries have come to Karnataka. They are into the drug business. We catch them and register cases against them, but they want the case to be registered because once the case is registered, we cannot deport them."
"We have gone to the extent of demolishing the rented building where they stay," he had said.
