Karnataka HC extends stay on ED order freezing Xiaomi India assets

Bengaluru: 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 1 June, with the hearing of the case posted to that day.The ED froze Xiaomi's accounts on 29 April 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 5 May, 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 5 May.Subsequently on 12 May, 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.Also Read:ED seizes Rs 5,551 crore from Chinese smartphone giant Xiaomi's India arm over forex violationsED seizure: High court relief for Xiaomi India, can use bank accounts now'Baseless': ED dismisses Xiaomi's claims of 'coercion, physical violence threat' during forex probeKarnataka HC allows Xiaomi access to bank overdrafts to make payments, extends stay on ED seizure orderRead all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.