Fact Check: Did ED coerce Xiaomi executives during forex probe?

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New Delhi, May 07: Chinese smartphone maker Xiaomi has alleged its top executives faced threats of "physical violence" and coercion during their questioning by ED investigators in Bengaluru.

According to Rueters, the probe agency officials warned the company's former India managing director, Manu Kumar Jain, current Chief Financial Officer Sameer B.S. Rao, and their families of "dire consequences" if they did not submit statements as desired by the agency, Xiaomi's filing dated May 4 stated.

However, the ED on Saturday rejected as "baseless" the allegations that the statements of Xiaomi India officials.

The federal agency was responding to certain news reports that said Xiaomi alleged in a recent filing before the Karnataka High Court that its top executives were threatened with "physical violence and coercion" during their questioning by ED investigators in Bengaluru.

The 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."

"The officials of Xiaomi India deposed their statements before ED under FEMA voluntarily in the most conducive environment on various occasions," the agency said.

It said the statements were deposed by them on the basis of documents and information provided by the company during the course of investigation.

"Their statements corroborate with the written replies submitted to ED and the material on record," the agency said.

The development comes in the backdrop of ED passing an order on April 29 to seize Xiaomi India's funds worth over Rs 5,551 crore over the alleged violation of the Indian foreign exchange law (Foreign Exchange Management Act).