The Enforcement Directorate (ED) on Saturday raided Chinese mobile phone manufacturer Xiaomi for violating the foreign exchange laws and seized Rs. 5,551 crore.

Xiaomi India is a wholly-owned subsidiary of the China-based Xiaomi group. This amount of Rs 5,551.27 crore lying in the bank accounts of the company has been seized, the ED said in a statement.

In a press release after the ED’s statement, Xiaomi Technology India said its operations in the country are “firmly compliant with local laws and regulations”.

Notably, Xiaomi had donated Rs 10 crore to PM-CARES fund in 2020.

Broaching the issue, TMC Lok Sabha member Mahua Moitra took pot shots at the Modi government and said, “ED seizes Rs5,500 crore assets from Chinese smartphone giant Xiaomi over Forex law violations. Same Xiaomi allowed to donate Rs 10 crore to the opaque PM-CARES fund.”

The PM CARES fund was established by PM Modi in March 2020 after the first wave of the Coronavirus pandemic hit India.

Modi is chairman of the Fund while Defence Minister Rajnath Singh, Home Minister Amit Shah, Finance Minister Nirmala Sitharaman have been involved as the trustee of the PM CARES fund.

NH has reported that a number of Chinese companies have contributed to the Fund at a time when India army was facing Chinese incursion in Ladakh.