The ED (Enforcement Directorate) responded to Chinese smartphone maker Xiaomi allegations that its top executives faced threats of “physical violence” and coercion during questioning in connection with forex violation.
Calling it “untrue and baseless”, ED said that “allegation now made after passage of substantial time is an afterthought.”
Xiaomi has been under investigation since February and last week the Indian agency seized $725 million 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. On Thursday, a judge heard Xiaomi lawyers and put on hold the Indian agency’s decision to freeze bank assets. The next hearing is set for May 12.
The company alleges intimidation by India’s premier enforcement agency when executives appeared for questioning multiple times in April.
Xiaomi is a tader and distributor of mobile phones in the country under the brand name of MI.
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