Execs of Xiaomi, One Plus over ‘Forex Violations’ ED Summons

The Enforcement directorate has summoned officials of Chinese telecom companies One Plus and Xiaomi for suspected forex violations, sources in the know told ET. The ED action follows investigations by the income tax (I-T) department, which had raided these companies – and also Oppo – last year, people familiar with the developments told ET. Tax sleuths claimed to have seized data allegedly corroborating charged of tax evasion during searches. In the case of Xiaomi, the ED is probing alleged foreign remittances of more than ₹1,000 crore, said people in the know. These remittances include transfers by the company – in the nature of royalty – to and on behalf of its group companies based abroad. The agency had summoned Manu Kumar Jain, Xiaomi’s global vice-president, on Wednesday. Jain’s statement was recorded at the agency’s Bengaluru office documents sought by the agency. In the case of OnePlus, an official from its finance department in in Bengaluru was asked to join the probe. This was the third time Jain, who was the managing director of Xiaomi’s India operation, had been summoned by the ED He was summoned twice earlier, but had failed to appear. Queries sent to OnePlus remained unanswered till press time Wednesday. Xiaomi said in a statement, “Xiaomi is law-abiding and responsible company. We give paramount importance to the laws of the land. We are fully compliant with all the regulations and are confident of the same. We are cooperating with authorities with their investigation,” The government had banned short-from video apps Tik Tok and Snack Video in 2020, but a similar app – Zili – continues to be operated by Xiaomi.

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