Xiaomi Global Vice President Manu Kumar Jain Skips ED Questioning, Seeks More Time to Join Probe

by Pelican Press
6 views 2 minutes read

Xiaomi Global Vice President Manu Kumar Jain Skips ED Questioning, Seeks More Time to Join Probe

Chinese mobile company Xiaomi global vice president Manu Kumar Jain on Wednesday could not appear before the Enforcement Directorate (ED) for questioning and requested more time to join the investigation.

The Enforcement Directorate has summoned Jain, a former head of Xiaomi’s India unit, in a case related to a violation of the provisions of the Foreign Exchange Management Act (FEMA). ED is investigating this case referred by Income Tax Department.

Sources told ANI that Jain has expressed his unavailability to appear before ED today and sought more time to join the investigation. Now ED will issue fresh summons to Jain for joining the investigation.

Sources said ED is investigating the case whether the company has violated FEMA as suspected by the Income Tax Department.

In December 2021, the Income Tax Department conducted searches on Chinese mobile companies Xiaomi, Oppo, OnePlus and some other Chinese Fintech firms. The searches were conducted on various premises related to these companies spread across different parts of the country including, Karnataka, Tamil Nadu, Assam, West Bengal, Andhra Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Bihar, Rajasthan and Delhi NCR.

ED sources told ANI that Xiaomi has made remittances in the nature of royalty, to and on behalf of its group companies located abroad, which aggregates to more than a thousand crore rupees.

The claim of such expenses does not seem to be appropriate in light of the facts and evidence gathered. During the investigation, ED gathered that Xiaomi had not complied with the regulatory mandate for disclosure of transactions with associated enterprises. Such lapse makes them liable for action.

Foreign funds have been introduced in the books of the Indian company but it transpires that the source from which such funds have been received are of doubtful nature, purportedly with no creditworthiness of the lender. The quantum of such borrowings is in crores of rupees on which interest expenses have also been claimed.

Sources told ANI that evidence with regard to the inflation of expenses, and payments on behalf of the associated enterprises have also been noticed which led to the reduction of taxable profits of the Indian mobile handset manufacturing company.

Affiliate links may be automatically generated – see our ethics statement for details.

Source link

#Xiaomi #Global #Vice #President #Manu #Kumar #Jain #Skips #Questioning #Seeks #Time #Join #Probe

You may also like