MUMBAI: The Enforcement Directorate has freezed four Indian bank accounts of Chinese smartphone giant Xiaomi for allegedly making suspicious transactions abroad in February. The ED seized Rs 5551.27 crore from these accounts under the Foreign Exchange Management Act, 1999.

The ED had summoned the former Indian head of Xiaomi to check whether the company's business practices were compliant with Indian Foreign Exchange Act. For the past two years, ED has been closely monitoring the activities of the Chinese company. As part of this, former chief Manu Kumar Jain was summoned.

The ED examines Xiaomi's Indian unit, the company's contractors, their parent company in China and their business structure. Xiaomi is the best selling smartphone brand in India with 24% market share.

ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company.

— ED (@dir_ed) April 30, 2022