Xiaomi said both the officials were threatened with dire consequences including arrest, damage to career, criminal liability and violence.
Bengaluru: Xiaomi India, one of the leading smartphone companies in the country, has alleged that the Enforcement Directorate warned the Chinese company's India managing director, Manu Kumar Jain, Chief Financial Officer Sameer BS Rao and their families of dire consequences if they didn't make statements wanted by the agency.
The company alleged intimidation by India's financial crimes fighting agency when the employees appeared for questioning in April, according to the filing in the Karnataka High Court, Reuters reported.
Both the officials were threatened with dire consequences including arrest, damage to career, criminal liability and violence if they didn't make statements as directed by the agency, the filing said.
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," it added.
The agency has been probing the company for its alleged violation of the Foreign Exchange Management Act. Earlier this month, it seized the company's assets in Indian bank accounts to the tune of Rs 5,551.27 crore.
"ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company," Enforcement Directorate had said in a tweet.
The case involves foreign remittances made by the country to China via a third company, violating RBI's guidelines. An ED official had told the Indian Express that around Rs 3,000 crore were sent to China in violation of the FEMA. A case had been registered against the company for the same.
In April, Jain was questioned by an investigating officer in Bengaluru. He was asked to furnish financial documents related to the company, including shareholding, funding sources, vendor contracts and payments made abroad.
A Xiaomi spokesperson had told the news agency PTI that they were a law-abiding company.
"We give paramount importance to the laws of the land. We are fully compliant with all the regulations and are confident of the same. We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information," the spokesperson had said.
With inputs from Reuters, PTI
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