The Enforcement Directorate on May 7th, Saturday said that Xiaomi’s accusations of Indian official coercing the company’s people and that their words were recorded out of force and compulsion were completely baseless and unsupported.
The enforcement directorate is a government law enforcing organisation and economic data agency whose purpose is to enforce economic rules, and making sure that businesses, corporations, organisations and individuals follow the economic laws that have been set by the country. They also collect and compose crucial data regarding the economy which will be used the agency, the government to make laws and policies and other governmental agencies as well.
Xiaomi approached the High Court of Karnataka very recently and filed a case accusing investigating officers of the Enforcement Directorate of physically threating and coercing many of Xiaomi India’s top brass as the investigation went on.
The Enforcement Directorate issued a public statement replying to the accusations saying that their agency is extremely professional and that they hold up the virtue of rules and ethics to the highest order and that none of their officers ever took part in any coercion or threatened the employees of Xiaomi during any stage of the probe at all. They went to say that the company’s accusations on their agency are completely unsupported and just not true.
The statement also said that all the information and statements given by the employees of Xiaomi were completely up to them and voluntary and it was done in a productive and normal setting to make sure they got the best out of the entire probe.
All of this back and forth comes after the Enforcement Directorate passed a motion to seize some of Xiaomi India’s funds that amount to a total Rs. 5,551 crores as the company was accused of going against the country’s foreign currency exchange rules.
The High Court of Karnataka has since chosen to say their order which means that the court temporarily stopped or postponed the proceedings of the case or trial to secure the rights of the parties involved.
The organisation also said that Manu Kumar, the Global VP of the company under the probe was questioned on four different days spanning from 13th of April till 26th of April while their chief financial officer was questioned on 6 different occasions.
Xiaomi is currently the most popular smartphone company in India taking about quarter of the total smartphone market share and they will hope that this debacle doesn’t force them to lose their grip of the summit.
