The High Court of Karnataka has allowed Chinese firm Xiaomi Technology India Pvt Ltd to use the overdraft facilities from banks for purposes other than paying royalties. The company had sought to use Rs 1,000 crore for its day-to-day expenditure.
The order by the HC on Thursday came after the company approached it seeking clarification on an earlier order.
“It is clarified that the petitioner is at liberty to take an overdraft and make payments from such an overdraft excluding royalty, it is a matter between it and the bank,” the court said, clarifying its May 5 order.
The HC last week stayed the Enforcement Directorate’s order freezing Rs 5,551 crore in the accounts of Xiaomi in India. Xiaomi approached the HC seeking clarification as the banks were not allowing it to use the funds for its day-to-day activities though the court had allowed it.
On Thursday, Xiaomi’s counsel submitted before the HC that it was being targeted for being a Chinese company. It was claimed that Xiaomi has 25 per cent share of the smartphones market in India and other firms with 75 per cent market share were also paying royalties for the last 12 years to the same foreign companies.
“There is no action against them because I am Chinese and they are not Chinese, that is the only restriction. They only want to wreak vengeance on China, that is the problem,” the counsel alleged.
