Bengaluru, May 23: The Karnataka High Court on Monday extended the stay on the Enforcement Directorate's (ED) order of freezing Rs 5,551 crore in the bank accounts of Xiaomi India.

Justice S G Pandit extended the stay till June 1, with the hearing of the case posted to that day.

The ED froze Xiaomi's accounts on April 29 alleging that it has violated the Foreign Exchange Management Act (FEMA) by illegally transferring money abroad to three companies under the guise of royalty payments.

In an interim order on May 5, a vacation bench of the High Court stayed this order.

"Operation of the order is stayed subject to the condition that petitioners will operate the bank accounts which are seized only for the purpose of meeting the expenses for carrying out the day-to-day activities of the company," the HC said in its interim order on May 5.

Subsequently on May 12, the HC modified its interim order and allowed the company to draw overdraft from the banks to meet these expenses. However, on both the occasions, the company was expressly barred from using the money to pay royalty to companies outside India.

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Mangaluru: Continuous rainfall in Dakshina Kannada including Mangaluru, is now posing threat to the low-lying areas with flooding if the rain continues for next few hours.

Incidents of wall of the houses and compound walls collapsing, have also been reported from several areas since Wednesday night.

Similarly, cracks were also spotted on the Maravur Bridge following which the Deputy Commissioner instructed the PWD Executive Engineering to visit the spot and inspect the bridge on Thursday morning.

Due to the drainage issues, several areas in Mangaluru including Kottara Chowki were experiencing water logging causing traffic jams and panic among the locals who fear flooding if the rains do not stop.

In several other areas, homes have also been inundated with rain water putting the houses on risk of damages. Residents in these areas were evacuated and were shifted to other localities temporarily.

The Deputy Commissioner also declared holidays to PU and Degree colleges due to rains on June 30. He also added that the decision on declaring holidays to schools and other colleges will be taken after assessing the situation in the district by Friday morning.