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

The Karnataka High Court on Monday extended its earlier interim stay on the order of the Enforcement Directorate (ED) seizing ₹5,551.27 crore from the bank accounts of Xiaomi India [Xiaomi Technology India vs Union of India and ors]..Justice SG Pandit posted the matter for June 1 and extended the stay order in place till that date. The single-judge in effect continued the earlier orders by other single-judges hearing the case that allowed using the accounts for daily expenses. The ED order was passed on the ground that the Chinese technology company violated provisions of the Foreign Exchange Management Act (FEMA).During the last hearing on May 12, single-judge Justice S Sunil Dutt Yadav had said that the earlier interim order would be extended till May 23."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 of May 12 had stated.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 had said.Prior to that on May 6, single-judge Justice Hemant Chandanagoudar had granted Xiaomi interim relief against the ED's order. Justice Chandanagoudar had earlier 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.Xiaomi is being represented by Senior Advocates S Ganesh and Sajan Poovayya, who are instructed by AZB & Partners' led by Senior Partner Aditya Vikram Bhat.Additional Solicitor-General MB Nargund is representing the Central government and the ED. .Ganesh, Poovayya and AZB get relief for Xiaomi from Karnataka High Court in FEMA case by ED