Karnataka High Court extends stay on ED seizure of Xiaomi India bank accounts

The Karnataka High Court on Thursday extended the stay on the order of the Enforcement Directorate (ED) seizing ₹5,551.27 crore from the bank accounts of Xiaomi India [Xiaomi Technology India v. Union of India]..Justice S Sunil Dutt Yadav said that the interim order would be extended till the next date of hearing. "It is clarified that the petitioner is at liberty to take overdraft, and make payments excluding royalty from such overdraft. It is a matter between the petitioner and the bank," the order stated. .Senior Advocate Ganesh appearing for Xiaomi, argued, just because i am Chinese, i am being targeted. .On May 6, Justice Hemant Chandanagoudar had granted Xiaomi interim relief against the order of the ED passed on the ground that the Chinese technology company violated provisions of the Foreign Exchange Management Act (FEMA).The single judge had, on the last hearing, said that the money in the bank account blocked by the ED could be used for day-to-day expenses and payment of salaries to employees..The matter today was listed before Justice Sunil Dutt. The Court today recorded the submission of the Additional Solicitor General, that an application for vacating the stay would be filed during the course of the day by the ED.It was observed that the request of the petitioner for a further interim order requires detailed hearing, but the same could not be taken up due to paucity of time. "Due to paucity of time, matter cannot be considered. Therefore, matter is adjourned to May 23," the Court said..Xiaomi was represented by Senior Advocates S Ganesh and Sajan Poovayya who were instructed by AZB & Partners' led by Senior Partner Aditya Vikram Bhat..Ganesh, Poovayya and AZB get relief for Xiaomi from Karnataka High Court in FEMA case by ED