According to the ED, Myntra declared its business as wholesale cash and carry and received FDI funds based on this classification. However, it sold goods to Vector E-commerce Pvt. Limited, a related company that then retailed these goods directly to customers. This arrangement effectively split direct business-to-customer sales into business-to-business and then business-to-customer transactions between group companies, contravening FDI policy limits that allow only up to 25% sales to related entities under wholesale trading rules.

Myntra responded by confirming its commitment to comply with all laws and expressed willingness to cooperate with authorities, though it noted it had not yet received official complaint documents. In a separate but related case, the ED also booked One Sigma Technologies Pvt. Ltd. (SIMPL), known for its Buy Now Pay Later app, for alleged FEMA violations involving ₹913.75 crore through unauthorized foreign investments from the US. These developments highlight increased regulatory scrutiny on e-commerce firms concerning their compliance with India’s foreign investment rules and operational structures.

The post ED Probes Myntra and Simpl for ₹2,567 Crore FEMA Violations in Foreign Investment Case appeared first on The Tech Outlook.

The federal probe agency had seized Rs.5551.27 crore worth of funds of Xiaomi Technology India Private Limited lying in its bank accounts under the FEMA for unauthorized remittance of this amount in the guise of royalty abroad. As per Times of India, “ The authority while confirming the seizure held that ED is right in holding that foreign exchange equivalent to Rs.5,551.27 crore has been transferred out of India by Xiaomi India in an unauthorized manner and is held outside India on behalf of the group entity in contravention of Section 4 of FEMA,1999 and the same is liable to be seized in terms of provisions of Section 37A of the FEMA.”

It is said that to operate in India Xiaomi needs to pay Rs.16,653 crore also in terms of the amount involved, the ED order for confiscating Xiaomi Technology India’s bank accounts is the largest to date confirmed by the quasi-judicial authority under foreign exchange laws.

The post ED issues show cause notices under the FEMA Act to Xiaomi Technology India Private Limited appeared first on The Tech Outlook.

Post the seizure order on April 29, 2022, the Chinese mobile phone brand filed a writ petition in the Karnataka High Court in order to seek a stay. The court directed Enforcement Directorate (ED) to hear the matter of the case within another 60 days’ time. However, the Karnataka high court had issued an interim order to stay the seizure. Xiaomi in the meanwhile has been able to go about its business for quite some time. Later on, within 180 days, FEMA can dispose of the petition. So they proceeded with it. However, Xiaomi and ED were allowed to present their representatives and FEMA heard their say.

This severe action was taken because Xiaomi disposed of large amounts stating them as royalty abroad. Certain amounts remitted to US foreign entities were also seen to benefit Xiaomi. As per the banks, Xiaomi, the mobile-making brand, has provided false information to the banks while remitting money abroad. These activities were hidden, illegal, and unauthorized which landed Xiaomi in trouble.

The post 5.5 K crores to be seized from Chinese Xiaomi as per ED order under FEMA: Xiaomi lands in trouble appeared first on The Tech Outlook.

The FIR was based on a complaint filed by Federal Bank officials in the Chief Metropolitan Magistrate’s Court in Calcutta. Aamir Khan, the son of Nesar Ahmed Khan, launched the mobile gaming application E-Nuggets, which the ED said was designed to defraud the public. During the investigation, it was discovered that the accused was transferring a portion of the money illegally earned through the gaming app (E-Nuggets) to another country using Crypto Currency Exchange.

“Furthermore, after collecting a substantial sum of money from the general public, withdrawals from the said App were abruptly halted for one reason or another. Following that, all data, including profile information, was deleted from the aforementioned App servers “The agency made the announcement on Wednesday.

The investigation by the agency revealed that the accused was transferring a portion of the money illegally earned through the gaming app (E-Nuggets) to another country using Crypto Currency Exchange.

“It was discovered that one such dummy account was opened in WazirX in the name of Sima Naskar, Proprietor of Pixal Design, which was used to purchase cryptocurrencies/crypto assets. Following that, the cryptocurrencies were transferred to another account on another cryptocurrency exchange, “Binance.” “It stated.

The post Bitcoins worth 12.83 crores froze by ED appeared first on The Tech Outlook.

According to the ED dummy, Indian directors were originally employed to incorporate the firms with the assistance of chartered accountants, and after some time, Chinese nationals travelled to India and assumed the directorship in these companies. A crackdown on hundreds of Chinese-controlled mobile apps that operate in India and are tied to lending, dating, and betting has resulted from the increased worry. The ED discovered more than a hundred Chinese-controlled dating, betting, and loan apps while looking into these Chinese-controlled businesses. The organisation estimates that just the betting applications have generated earnings of Rs. 1,300 crores. The Ed switched its focus to payment gateways after freezing Rs 47 crore in HSBC Bank two years ago that belonged to Chinese betting and dating apps for unauthorised money transfers to China.

According to the investigation, these Chinese nationals launched numerous websites that appeared to be similar to one another and were hosted by Cloudfare in the United States. “These websites encouraged naive people to become members and use its services through various online apps,” the ED stated. Through specialised restricted groups made through Telegram and WhatsApp, even agents were employed to draw customers.

The post Indian officials are concerned about China’s financial incursion, it is found that certain Chinese nationals had floated numerous Indian companies unlawfully appeared first on The Tech Outlook.

"ED has been carrying out search operations under the provisions of the PMLA, 2002 (on 10.09.2022) at 06 premises in Kolkata, in respect to an investigation relating to the Mobile Gaming Application. Huge cash (More than Rs 7 Crore) has been found at the premises."

— ED (@dir_ed) September 10, 2022

According to ED, an FIR was filed at Park Street Police Station. The raids were carried out at six offices of the gaming app ‘E-Nuggets’. Amir Khan, the creator of the mobile gaming application, has been named as an accused in the case.

The ED is also investigating whether the app’s operators had ties to other Chinese apps that provided inflated loans to people. After some borrowers committed suicide as a result of harassment by collection agents for these illegal lenders, the government launched a crackdown on illegal Chinese loan apps.

The post ED conducted raids ‘E nuggets’ offices in Kolkata under the PMLA, Rs 7 crore confiscated appeared first on The Tech Outlook.

The petitioner, Ramachandran Viswanathan, founder of Devas enforced a $1 billion arbitration judgement. This comes in as part of a long ongoing battle between Devas Multimedia and the Indian Government. 

Sitharam has accused the earlier UPA government for the fiasco. In January, she stated that the government will contest the adverse international arbitration awards on the basis of a Supreme Court Judgement that upheld orders dismissing the appeal by Devas Multimedia for winding up the company by the National Company Law Tribunal. She blamed the Congress government for not appointing an arbitrator to fight Devas Multimedia in international arbitration tribunals. 

 The disputes arose when the UPA government cancelled a deal earlier between Devas and ISRO company, Antrix. Since then the investors filed three cases for international arbitration. India lost all of the arbitrations. Recently, Ramchandran Viswanathan took up cudels against the New Delhi by laying claim on Air India’s assets in Canada and on Indian Government-owned property in France.  A Canadian Court authorized the seizure of assets belonging to Airport Authority of India and Air India in December 2021.

The recent petition comes in as another attempt to bring the Indian Government to the dispute settlement table. Along with Sitharam, the other Indians against whom the petition has been filed includes, Antrix CEO Rakesh Sasibhushan, two Supreme Court Judges and Ashish Pareek (CBI), Sanjay Kumar Mishra and other ED officials.  

The post Indo-American founder of Devas, files petition against Nirmala Sitharam and other Indian officials appeared first on The Tech Outlook.

When crypto boys realise that crypto is a sham 😂#WazirX #binance
pic.twitter.com/O7nLLrZlSb

— Finance Memes (@Qid_Memez) August 7, 2022

On one hand Shetty of WazirX states that WazirX was acquired by Binance. Zanmai Labs, owned by Shetty and his co-founders is an Indian entity, which has license from Binance yo oeprate INR-Crypto pairs in WazirX.

Zhao of Binance on the other hand states that the transaction to acquire Wazirx was never completed.
Along with this, Zhao on Saturdayalso advised in his tweet that if users have funds on WazirX, they should transfer it to Binance. He said that they can disable WazirX wallets on a tech level but won’t do so.

Crypto experts are questioning the confusing assertion that Binance doesn’t have any equity in Zanmai Lab. They are also raising questions about the timing of Binance mentioning that it doesnt possess quity to Zanmai Lab. They are scratching their heads on why this was brought to light so late.

The Enforcement Directorate recently froze bank balance worth Rs 64.67 crore of crypto exchange WazirX on money laundering probe. The ED has also accused the crypto exchange firm of assisting 16 Indian fintech firms, in laundering proceeds of crime by transferring money to unknown foreign wallets.

The post Netizens trend WazirX with fresh memes on twitter appeared first on The Tech Outlook.

WazirX Founder stated :

“We could shut down WazirX” – Proves you have control “Shared access of AWS” – You have ROOT access of AWS! Anyone with root access controls AWS “WazirX domain transferred to our control” – Good to see you confirm that Only control now is Zanmai, why are you not taking it?

To this Binance’s CEO said :

People playing deception wording games. We can shut down the domain. It just hurts users. We do NOT have control of the trading system. You just gave the AWS login, no source code, no deployment capability. You also retained access to the AWS account, source code, deploy, etc.

People playing deception wording games. We can shut down the domain. It just hurts users. We do NOT have control of the trading system. You just gave the AWS login, no source code, no deployment capability. You also retained access to the AWS account, source code, deploy, etc. https://t.co/Zpp6MYlHtp

— CZ 🔶 BNB (@cz_binance) August 6, 2022

Why so much hassle between the two founders?

Recently the offices of WazirX were raided by the Indian authorities over allegations of Money Laundering. After the news broke out several allegations were made at the Binance also. As finance stated that they owned WazirX means it had control over the functioning itself. However, Binance’s CEO has denied all probabilities that they never had access to their source code and limited access to their AWS system.

Both CEOs have started a Twitter war in which both of them are accusing each other on Twitter. It looks like no one wants to have the heat from the Indian authorities. WazirX which is one of the major crypto wallets in India has been facing scrutiny from the Indian authorities over its functioning.

The post War of words between WazirX founder and Binance CEO after Indian authorities raided WazirX offices appeared first on The Tech Outlook.

Changpeng tweets “Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems. WazirX has been uncooperative with us, and looks like uncooperative with ED as well”.

Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems.

WazirX has been uncooperative with us, and looks like uncooperative with ED as well.

— CZ 🔶 BNB (@cz_binance) August 6, 2022

The Binance has claimed that it does not own any equity in the Zanmai Labs which operates WazirX. This came after the Enforcement Directorate (ED) on Friday seized bank balances of Rs 64.67 crore belonging to WazirX.

Accordingly, ED says that these Chinese loan lending companies, which were closed down in India, redirected their funds through crypto exchanges, and the maximum amount was transferred into the WazirX exchange. Nischal Shetty, the managing director of WazirX said that WazirX only has an IP and preferential agreement with Binance. However, Zanmai claims that they are only in INR-to-crypto transactions and all the other transactions are made by Binance on WazirX.

According to Zhao, Binance only offers wallet services for WazirX as a tech solution and has not acquired WazirX. Also, Zhao said that WazirX is itself responsible for all of the WazirX exchanges including trading, KYC, withdrawals, etc.

The post Changpeng Zhao says “Binance do not have any control on WazirX systems” appeared first on The Tech Outlook.