Xiaomi is being investigated by authorities in India, one of its biggest markets. His former high-ranking officials have also been summoned. What's wrong?
As quoted by us from the Indian Express, Wednesday (13/4/2022) the Enforcement Directorate of India since February has investigated Xiaomi and summoned the former Managing Director of Xiaomi India, Manu Kumar Jain, to come to their office.
According to two related sources who spoke to Reuters news agency, an investigation is underway to find out whether Xiaomi's business practices comply with the foreign exchange rules in India.
Jains themselves usually live in Dubai, but according to sources have been in India. Chances are, he will fulfill the call from the authority.
When confirmed, a Xiaomi spokesperson confirmed that they had complied with all applicable rules and regulations in India while operating.
"We are cooperating with the authorities in their ongoing investigation to ensure that they have all the necessary information," a Xiaomi spokesperson said.
India's actions seem to indicate that Xiaomi is being investigated, especially in December, a separate investigation came to the Xiaomi India office regarding alleged tax evasion.
In this latest investigation, the business structure between Xiaomi India, its manufacture and its parent company in China is examined. The flow of funds from Xiaomi India to China was also investigated.
Since February according to sources Xiaomi has been asked to submit several related documents. The document includes details of foreign funding, share ownership, funding patterns, executives and other matters related to the company's finances.
Xiaomi itself is the most popular smartphone manufacturer in India. According to Counterpoint Research, their market share in 2021 will reach 24%.