The enforcement directorate had seized the money saying
Xiaomi had illegally transferred funds abroad to three entities, including one
in the Xiaomi group, describing them as payments "in the guise of
royalty".
But the high court in the southern state of Karnataka put
that decision on hold after Xiaomi challenged it, saying all the royalty
payments were legitimate.
The hold decision would continue for now, a judge of the
same court said on Thursday, adding that the agency would make a formal request
later in the day to restore the freeze.
"The matter requires further hearing," added the
judge, Siddappa Sunil Dutt Yadav, who set the next hearing for May 23.
A spokesperson for Xiaomi did not immediately respond to a
request for comment.
Xiaomi's lawyers told the court that banks were not allowing
the company to make necessary payments, even though the court had allowed it to
use funds for purposes other than royalty payments.
On Thursday, the judge allowed Xiaomi to use a bank
overdraft facility for such payments.
The agency's move comes after Xiaomi said in a court filing
that its top executives faced threats of "physical violence" and
coercion during questioning by enforcement officials, contentions that the
agency has dismissed as untrue. © Reuters
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