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The Enforcement Directorate had seized the money, saying Xiaomi had illegally transferred funds abroad to three entities, including one in the Xiaomi group, describing them as payments "in the guise of royalty". But a court put that decision on hold after Xiaomi challenged it.
Xiaomi Corp had alleged its top executives faced threats of "physical violence" and coercion during questioning by the Enforcement Directorate.
Officials from the Enforcement Directorate warned the company's former India managing director, Manu Kumar Jain, current Chief Financial Officer Sameer BS Rao, and their families of "dire consequences" if they did not submit statements as desired by the agency, Xiaomi's filing dated May 4 stated, according to news agency Reuters.
Mr Jain and Mr Rao were on certain occasions "threatened ... with dire consequences including arrest, damage to the career prospects, criminal liability and physical violence if they did not give statements as per the dictates of" the agency, according to the filing in the Karnataka High Court.
The Enforcement Directorate has denied allegations by Xiaomi India that the probe agency coerced its officials to give statements in the alleged illegal remittances case.
The Enforcement Directorate had said the statements were "deposed by them on the basis of documents/information provided by the company during the course of investigation. Their statements corroborate with the written replies submitted to ED and the materials on record."
Xiaomi has been under investigation since February and the Enforcement Directorate in late April seized Rs 5,551 crore lying in the company's India bank accounts, saying it made illegal remittances abroad "in the guise of royalty" payments.
Xiaomi has denied any wrongdoing, saying its royalty payments were legitimate. A judge had then heard Xiaomi lawyers and put on hold the Enforcement Directorate's decision to freeze bank assets. The next hearing was scheduled for today.
Mr Jain is now Xiaomi's global vice president based out of Dubai and is credited for Xiaomi's rise in India, where its smartphones are hugely popular.
Xiaomi was the leading smartphone seller in 2021 with a 24 per cent market share in India, according to Counterpoint Research. Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India has cited security concerns in banning more than 300 Chinese apps since then and also tightened norms for Chinese companies investing in India.
With inputs from Reuters
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