Xiaomi approaches Karnataka HC again over seizure of assets
Bengaluru(PTI): Chinese consumer electronics company Xiaomi Technology India Private Limited has once again approached the Karnataka High Court.
In a petition filed on October 3, the company challenged the September 29, 2022 order of the Foreign Exchange Management Act (FEMA) Competent Authority which confirmed the April 29 seizure order of the Enforcement Directorate (ED).
The ED had earlier this year 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.
The company had approached the HC earlier this year against this order. The HC had, however, ordered it to approach the Competent Authority under FEMA.
On Thursday, the vacation bench of Justice N S Sanjay Gowda heard the petition by Xiaomi. Xiaomi sought an interim order but had not produced the Competent Authority's order copy. It sought for dispensation of the same.
The HC however ordered, "Request made for dispensation of production of certified copies of impugned seizure order is granted subject to production of the certified copies within a period of four weeks."
Notices for the respondents, Ministry of Finance, and Directorate of Enforcement were ordered to be issued.
Additional Solicitor General M B Nargund and advocate Madhukar Deshpande pointed out to the HC that the company had to approach the Appellate Authority against the Competent Authority order, rather than approach the HC.
In the new petition, Xiaomi has challenged the Competent Authority's order on grounds that a representative of a foreign bank was not allowed to be examined during the hearing. The company's advocate argued that since the petition has also challenged the validity of Section 37A of FEMA which relates to assets held outside India by a company, the petition was maintainable.
On the other hand, Deshpande submitted that the company had already withdrawn most of the money that was seized. The HC had in the petition filed earlier this year allowed the company to use the money for its day-to-day activities but forbade it to use it to make payment of royalties.
The advocate pointed out that there was only Rs 1,900 crore in the accounts from the earlier Rs 5,551.27 crore.
The court orally observed that an interim order in favor of the company cannot be granted unless it provides a bank guarantee for the entire amount that was originally ordered to be seized by the ED.
The hearing of the case was adjourned to October 14.
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Sujit Nair raises concerns over speculation of DMK-AIADMK understanding to block TVK
Chennai: Journalist and political commentator Sujit Nair has expressed concern over speculation that the Dravida Munnetra Kazhagam and the All India Anna Dravida Munnetra Kazhagam could explore a post-poll understanding to prevent Vijay-led Tamilaga Vettri Kazhagam from forming the government in Tamil Nadu.
In a social media post, Sujit Nair said the election verdict in Tamil Nadu reflected a clear public demand for political change and argued that the mandate should be respected irrespective of political preferences.
Referring to reports and political discussions surrounding a possible understanding between the DMK and AIADMK, he said he hoped such developments remained only speculative conversations and did not turn into reality.
Nair stated that if such an alliance were to take shape, it would raise serious questions about ideological politics in the country. He said TVK had emerged through a democratic electoral process and that the legitimacy to govern in a parliamentary democracy comes from the people’s verdict.
According to him, attempts to prevent an electoral winner from forming the government through unexpected political arrangements may be constitutionally valid, but many people could view them as politically opportunistic.
He further said that such a move could particularly affect the political image of the DMK, which has historically projected itself around ideology, social justice and opposition politics. Nair said that in ideological terms, the DMK appeared closer to TVK than to the AIADMK, and joining hands with its long-time political rival only to remain in power could weaken its broader political narrative.
He added that the same questions would apply to the AIADMK as well, as the party had spent decades positioning itself against the DMK and such an arrangement could create discomfort among its cadre and supporters.
Drawing a comparison with Maharashtra politics in 2019, Nair said he had expressed similar views when the Shiv Sena formed an alliance with the Indian National Congress and the Nationalist Congress Party after the Assembly elections.
He said post-poll alliances between long-standing political rivals often create a public perception that ideology and electoral mandates become secondary when political power equations come into play.
Nair also said such developments increase public cynicism towards politics and reinforce the belief among voters that ideology is often sidelined after elections.
He maintained that the Tamil Nadu verdict was emphatic and said respecting both the spirit and substance of the mandate was important for the credibility of democratic politics.
