Xiaomi, the Chinese smartphone maker, that has been under investigation since February, has alleged “physical violence” from officials of the Enforcement Directorate.
A report from Reuters states that the company’s former India managing director, Manu Kumar Jain, and the current Chief Financial Officer Sameer B S Rao have alleged that they and their families have been threatened with “dire consequences” if they do not submit statements as per the financial crime-fighting agency desires.
The officials said that on several occasions they were threatened… with dire consequences including arrest, damage to career prospects, criminal liability and physical violence if they did not give statements as per the dictates of the agency. The officials filed their grievances in the Karnataka High Court.
The executives were able to resist the pressure but ultimately succumbed to it, the filling added.
Last week the Enforcement Directorate seized $725 million from the company alleging it was illegal remittances abroad “in the guise of royal payments”.
The cellular company has denied the allegation saying all its royal payments were legitimate.
On Thursday, the Karnataka High Court had put on hold the agency’s decision to freeze the bank assets. The next hearing is set for May 12.
Responding to Xiaomi’s allegations of “physical torture”, the Enforcement Directorate on Saturday has rejected them as “baseless”.
The Enforcement Directorate (ED) issued a statement saying it was “a professional agency with strong work ethics and there was no coercion or threat to the officers of the company at any point of time”.
“The allegations that the statement of the officials of Xiaomi India was taken under coercion by ED is untrue and baseless.”
(with inputs from agencies)