The enforcement directorate has been in the position to issue different types of Show Cause Notice to the Chinese mobile companies xiaomi because it has been involved in the violation of different laws that India has respected to prevent money laundering in the following exchange. According to the sources a total fine of 5500 crore has been levied on the company for all of these violations because it is completely a matter out of control.
The authority has also initiated and investigation to understand the reason due to which these violations took place and the way in which xiaomi can defend itself but for the time being it is difficult to comment on any situation because no filing has been made by the company on its behalf and it will be interesting to witness what evidences that the company has got to produce. The company is not the only person which has been involved in this entire situation but different other Financial Institutions and banks have also given a statement with respect to this.
The extent of authority which has been responsible to make this happen is definitely helpful to improve the quality of education but such kind of strict proceedings are very important for giving a warning to other companies to avoid undertaking such activities over the period of time at any cost because these activities will only reduce the efficacy of the matters over the period of time. The Financial Institutions along with the mobile company were responsible to exchange the foreign currency at a rate which was below than the one which is regulated by the Reserve Bank of India. Different laws of the following exchange have been in the position to take a strict action against any kind of violation which extend not only to the imposition of fine but also to imprisonment of a certain number of years. The mobile company has not issued any official statement for the time being but it has got for itself a proper legal team to associate with these kind of charges so that it is possible to come out of this confusion as soon as possible.
It is important to understand that this has not been the first time that the enforcement directorate has issued a show Cause Notice to the mobile company. This particular notice has been responsible to give a warning to the company to stop violating the Indian laws. This is one of the most important steps that has to be taken into consideration at Every cost. According to the sources China has to face the consequences of exchanging its currencies in India which are against the laws of the Indian territory. This will help to prevent other companies from following in the footsteps of xiaomi and also comply with the law as soon as possible.
