K'taka HC upholds seizure of Rs.5,551 crore from Xiaomi for FEMA violation
Bengaluru, Apr 21: The High Court of Karnataka on Friday upheld the seizure of Rs 5,551.27 crore from Xiaomi India for violation of the Foreign Exchange Management Act (FEMA).
The Enforcement Directorate (ED) had seized the amount from the company's account and this was upheld by the Competent Authority. Xiaomi had challenged the Competent Authority's order in the HC.
On Friday, Justice M Nagaprasanna dismissed the petition holding that it was valid under Section 37 A of FEMA. However, liberty was granted to Xiaomi to approach the Appellate Tribunal and challenge the Competent Authority's order under Section 37A(5).
The ED had in 2022 ordered the seizure of Rs.5,551.27 crore in the accounts of Xiaomi for allegedly violating FEMA rules and transferring money in the guise of royalty to three companies outside India; two in the USA and one in China.
The company had approached the HC against this order. The HC had however ordered it to approach the Competent Authority under FEMA. The Competent Authority had upheld the seizure.
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Xiaomi had approached the HC again challenging the Competent Authority's order. After hearing the arguments, Justice M Nagaprasanna had reserved the judgement on November 17, 2022.
Xiaomi had challenged the Constitutional validity of Section 37A of FEMA, which authorises the Authorised Officer prescribed by the central government to order seizure of property held outside India for violating Section 4 of the Act. The Court in its judgment has said that Xiamoi's challenge to the Section is maintainable, but since there was no arbitrariness in the Section 37A, it was "Constitutional".
The ED had given the seizure order to freeze the amount from the bank accounts of Xiaomi on April 29, 2022.
The Competent Authority confirmed the order on September 29, 2022. Xiaomi filed the petition on October 3, 2022 challenging it.
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Two held in UP's Bijnor for contact with Pakistan linked Dubai handler
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Bijnor (PTI): Two men were arrested in this Uttar Pradesh district on Friday for allegedly being in touch with a Pakistan-linked handler based in Dubai, police said.
Circle Officer, Najibabad, Anjani Kumar Chaturvedi said Uvaid Malik and Jalal Haider were arrested following inputs on their alleged links with Aqib, a resident of Meerut currently staying in Dubai.
According to police, Aqib had earlier come into the spotlight after a video surfaced on Instagram purportedly showing him displaying an AK-47 rifle and explosives.
During interrogation, the arrested men allegedly told police that Aqib used to incite youngsters against Hindus and encourage anti-national activities, the officer said, adding that detailed questioning of the accused is underway.
On April 6, Superintendent of Police (SP) Abhishek Jha said the video first surfaced in November last year. Aqib, a native of Sathla village in the Mawana area of Meerut, was allegedly seen in the video brandishing weapons.
Following the viral clip, a case was registered at the Nangal police station by sub-inspector Vinod Kumar. However, the then station house officer and investigating officer Satyendra Singh had recorded Aqib's statement and filed a final report, stating that the weapons seen in the video were toys, effectively giving him a clean chit.
Police said fresh developments have now revealed Aqib's suspicious links and the probe has been handed over to the Anti-Terrorist Squad (ATS).
The SP said action has been taken against the officials concerned, with the then SHO and investigating officer suspended and Circle Officer Nitesh Pratap Singh removed from his post.
