The Directorate of Enforcement (ED) has seized Rs 5551.27 crore from Xiaomi Technology India Private Limited, a wholly-owned subsidiary of China-based Xiaomu Group, under the provisions of the Foreign Exchange Management Act,1999, it said in a press release on Saturday.ED, which initiated the investigation in connection with illegal remittances made by the company in February, seized the amount from its bank account. ED said Xiaomi, which started operations in India in 2014, has remitted Rs 5,551.3 crore to three foreign-based entities which include one Xiaomi group entity, as ‘royalty’. The ED has alleged that these amounts were remitted on the instructions of their Chinese parent group entities. The amount remitted to the other two US-based unrelated entities was also for the ultimate benefit of the Xiaomi group entities, the agency said.“Xiaomi India has not availed any service from the three foreign-based entities to whom such amounts have been transferred. Under the cover of various unrelated documentary façade created amongst the group entities, the company remitted this amount in the guise of Royalty abroad which constitute violation of Section 4 of the FEMA. The Company also provided misleading information to the banks while remitting the money abroad,” it said.The agency had been probing the company since at least February and had recently asked Manu Kumar Jain, Xiaomi’s former India managing director, to appear before its officers.The ED’s probe follows investigations carried out by the income tax (IT) department, which had raided these companies in the past, people familiar with the developments told ET. Tax sleuths had claimed to have seized data allegedly corroborating charges of tax evasion during the searches.