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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Dakshina Kannada district administration gears up for monsoon season
Mangaluru (PTI): The Dakshina Kannada district administration has got down to work ahead of the monsoon season (June to August) by beginning preparations to tackle various rain-related issues.
At a meeting held on Tuesday, the district authorities, Deputy Commissioner Mullai Muhilan MP reached out to the ground-level bureaucracy with directions on how to handle the challenges during the monsoon season.
Addressing the drinking water and disaster management authority officials, he highlighted the problems faced due to poor maintenance of the electrical system under Mangaluru Electric Supply Company (MESCOM) and said it was not just failure of power supply during rains but also snapping of live cables and falling electric poles which were a concern.
Since this would cause serious damage to life and property, he urged MESCOM to take precautions by carrying out inspections.
Muhilan also directed MESCOM to deploy additional men and open more control rooms across the district during the monsoon season and said both urban and rural areas must be given equal importance.
Muhilan said in the run-up to the monsoons, the existing domestic water availability should be managed prudently.
At the meeting, emphasis was laid on cleaning of dumping yards and garbage disposal areas before the monsoon.
The health department was asked to take precautionary measures against the spread of infectious diseases such as dengue and malaria during the rainy season.
He said that the National Highway should list areas where landslides occur in Charmadi Ghat areas and information should be made available to people about traffic related issues in ghat areas.
The district Deputy Commissioner instructed the Fisheries Department to hold a meeting on precautionary measures for fishermen during the rainy season.
