![\"<p>FILE](\"\/\/www.iser-br.com\/Themes\/Release\/images\/responsive\/ettelecom-default.jpg\")
A vacation bench of Justice Sanjay Gowda asked the company to furnish a bank guarantee of Rs 5,551.27 crore, the amount the company allegedly remitted abroad, if it wanted the court to pass an interim order.
Xiaomi India had filed a writ petition challenging the constitutionality of the confirmation order passed by the competent authority appointed under Foreign Exchange Management Act, 1999 (FEMA), ET reported on Wednesday. The competent authority has held that the ED was right in attaching the company's assets, stating that the said amount was transferred abroad in an unauthorised manner and is held on behalf of the group entity in contravention to FEMA provisions.
Thursday, the deputy solicitor general, M B Nargund, appearing for ED, argued that that the company has misused the previous interim order by making payments to foreign entities for importing items essential to its manufacturing and sales of smartphone, and the same will be proved in an affidavit.
Nargund argued the company now has Rs 3,956 crore in its bank accounts, down from over Rs 7,000 crore it had when the ED's seizure order was passed.