KARNATAKA: In today’s verdict Karnataka High Court give permission to mobile phone manufacturer Xiaomi Technology India Pvt Ltd to seek bank overdrafts to make payments for its operations – excluding a royalty of Rs 5,500 crore to foreign technology suppliers that was frozen by the Enforcement Directorate (ED) through an order issued last month. The next hearing will be on May 23.
Ordered was issued by the single bench of Karnataka HC after Xiaomi approached the court on Thursday for a clarification of its May 5 order. During an argument, Xiaomi said that the “On May 5 high court order had resulted in banks blocking all payments by the company, including daily payments for the purchase of ancillary items for manufacturing and other purposes.”
During the hearing, Party said that the company should be allowed to access Rs 1,000 crore of funds in its frozen bank accounts for expenditure. The counsel for the ED opposed the move and argued that the firm had already moved out Rs 2,500 crore of funds from India as royalty for foreign technology suppliers prior to the April 29 order for a freeze of company accounts.
Later, the Advocate of Defendant party said “I am the number one seller of smartphones in the country at 25 percent (market share). Unfortunately, I am saying this with prejudice to the other side, I am Chinese,”.
Also, Read – https://indianlawinfo.in/sedition-law-124a/
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