The Enforcement Directorate on Saturday rejected mobile manufacturer Xiaomi Technology India’s allegation that the statements of its officials were recorded “under coercion” by the agency, PTI reported.

“The officials of Xiaomi India deposed their statements before ED under FEMA [Foreign Exchange Management Act] voluntarily in the most conducive environment on various occasions,” the agency said. “The allegations that the statement of the officials of Xiaomi India was taken under coercion by ED is untrue and baseless.”

Xiaomi India, which is the wholly owned subsidiary of the China-based Xiaomi group, has been accused of violating the provisions of the Foreign Exchange Management Act by the Enforcement Directorate.

The agency alleged that the company had transferred Rs 5,551.27 crore to three foreign-based entities in February in violation of the foreign exchange law. On April 30, the Enforcement Directorate passed an order to seize the amount remitted from the bank accounts of Xiaomi.

However, on May 5, the Enforcement Directorate’s order was stayed by a single bench of the Karnataka High Court, according to Live Law. The bench had allowed Xiaomi India to use the bank account for its day-to-day activities of the company.

On Saturday, Xiaomi India alleged that its top executives were threatened with “physical violence and coercion” during their questioning by the investigators of the federal agency in Bengaluru in April, Reuters reported, citing a court filing by the company on May 4.

The company alleged that its former India managing director, Manu Kumar Jain, current Chief Financial Officer Sameer BS Rao and their families were threatened with “dire consequences” if they did not submit statements as desired by the Enforcement Directorate.

“Jain and Rao were on certain occasions threatened...with dire consequences including arrest, damage to the career prospects, criminal liability and physical violence if they did not give statements as per the dictates of the agency,” the filing in the High Court said, according to Reuters.

“The executives were able to resist the pressure for some time, [but] they ultimately relented under such extreme and hostile abuse and pressure and involuntarily made some statements,” the filing added.

In response, the Enforcement Directorate said that it is a professional agency with strong work ethics and that Xiaomi India officials were never threatened.

The central agency added that the statement of Jain and Rao were recorded on several occasions in April, but no complaint was filed by them at any point in time, PTI reported.

“Last statement of the officials of the company was recorded on 26.04.2022 and the seizure order was passed on 29.04.2022,” the agency said. “It appears that allegation now made after the passage of substantial time is an afterthought.”