Xiaomi India: Karnataka HC rejects Xiaomi’s plea towards ED asset freeze order – Occasions of India

In what might be known as a setback to Xiaomi, Karnataka Excessive Courtroom has rejected the corporate’s plea difficult the seizure of Rs 5,551 crore by the Enforcement Directorate (ED), as per a report. ED Xiaomi’s property final 12 months alleging that the Chinese language firm made unlawful remittances to international entities by passing them off as royalty funds.
In keeping with a report by The Financial Occasions, the courtroom noticed that Xiaomi’s “challenge to the constitutional validity is maintainable on grounds that it is violative of article 14 of the constitution, since article 14 is person centric.” A single choose bench of Justice M Nagaprasanna dismissed the petition on deserves.

Xiaomi India has denied any wrongdoings and the courtroom granted Xiaomi India the choice to attraction beneath part 37A (5) of the Overseas Alternate Administration Act (FEMA).
What’s the case
In October, final 12 months, Xiaomi sought an finish to the freeze by searching for aid however the courtroom had stated the corporate should first present financial institution ensures protecting the $676 million in property which are frozen.
Xiaomi had stated in its authorized submitting that the asset freeze “is severely disproportionate and has effectively halted the operations” of the corporate.

Beforehand, the Chinese language firm beforehand stated the royalty funds it made had been reputable and truthful. Xiaomi added that it’s going to “continue to use all means to protect the reputation and interests.”
Samsung’s India smartphone share
In keeping with a report by market analysis agency Canalys, Xiaomi slipped to fourth place within the India smartphone cargo listing. The corporate shipped 5 million models within the first quarter of 2023.
Within the fourth quarter of 2022, Xiaomi got here third with 152.7 million shipments and a 13% market share, dropping the highest spot for the primary time because the third quarter of 2017. Earlier this 12 months, Xiaomi stated it can launch a slimmer smartphone portfolio in India in 2023.