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BENGALURU: Chinese mobile maker Shomi has argued in the Karnataka High Court that the transfer of large sums of money in technology royalties to three companies outside India was not in violation of the Foreign Exchange Act (FEMA). He said 75% of the technology loan was handed over to sister companies in China to be repaid to US company Qualcomm.
The Enforcement Directorate is considering a case related to the confiscation of Rs 5551 crore bank accounts of Shomi in India for allegedly violating FEMA rules. The court had earlier allowed Shomi to overdraft funds from his accounts for day-to-day operations.