India’s federal financial-crime fighting agency has summoned a former India head of China’s Xiaomi Corp in an investigation of whether the company’s business practices conformed with Indian foreign exchange laws, two sources with direct knowledge told.
The Enforcement Directorate has been probing the company since at least February, and in recent weeks asked Manu Kumar Jain, Xiaomi’s former India managing director, to appear before its officers, the sources said.
Jain, now a global vice president at Xiaomi based out of Dubai, was currently in India, the sources said, though the purpose of his visit was not clear.Asked about the probe, a Xiaomi spokesperson said the company abides by all Indian laws and was “fully compliant with all the regulations.”
“We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information,” the statement said.
The actions signal widening scrutiny of the Chinese smartphone maker, whose India office was raided in December in a separate investigation over alleged income tax evasion. Some other Chinese smartphone markers were also raided at the time.
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