The Enforcement Directorate (ED) has denied the allegations of Xiaomi India that its officials had recorded the statements of the company officials under coercion.

The ED, in a tweet, also refuted the claims of the phone maker that ED sleuths had threatened employees and their families with violence and termed it as “baseless” and “untrue.”

It was responding to certain reports that said Xiaomi alleged in a filing before the Karnataka High Court.

ALSO READ: Xiaomi got over half a billion dollar worth of assets in India seized but the shares are rallying — here's why

"ED denies allegations made by Xiaomi India that statements of its officials were taken under coercion as untrue and baseless," it said in a tweet.

ED denies allegations made by Xiaomi India that statements of its officials were taken under coercion as untrue and baseless.

— ED (@dir_ed) May 9, 2022The agency said the statements of Xiaomi employees were recorded on the basis of documents and information provided by the company during the course of its investigation.. "Their statements corroborate with the written replies submitted to ED and the material on record," it said.

ALSO READ: ED seizes Rs 5,551 crore assets from Xiaomi Technology India under FEMA

The company, on the other hand, has denied any wrongdoing.

Xiaomi is accused by the ED of violating Section 4 of the FEMA Act by transferring money in the name of 'Technology Royalty' to three companies outside India--two in the US and one in China.

ED had claimed Xiaomi India had not obtained any service from these three foreign companies. and seized Rs 5551.27 crore in the bank accounts of the company. The agency also initiated action for alleged illegal remittances made by the company in February 2022.

However, Xiaomi got a breather after the Karnataka HC stayed ED’s April 29.

ALSO READ: High court restrains ED in Xiaomi India case

(Edited by : Sudarsanan Mani)

First Published:May 9, 2022 3:52 PM IST