Chinese smartphone company Xiaomi Corp accused its top executives had received threats of "physical violence" and coercion from India's financial crime-fighting agency ED during its questioning session.
Xiaomi stated that the Enforcement Directorate officials warned the company's former India managing director, Manu Kumar Jain, and current Chief Financial Officer Sameer B.S. Rao, and their families of "dire consequences" if they refuse to submit statements desired by the agency.
On the other hand, The ED didn’t show any haste in responding to the allegations.
Xiaomi is facing an investigation for its alleged illegal remittance abroad “in the guise of royalty”. Last week the ED seized the smartphone company’s $725 million that was lying in its India bank accounts.
Meanwhile, Xiaomi negated all the allegations, claiming that its royalty payments were legitimate.
On Thursday, Karnataka HC put on hold the Indian agency's decision to freeze bank assets. The next hearing is set for May 12.
