SFIO Seeks Detailed Probe Into Xiaomi India’s Business Model
Xiaomi has landed in fresh trouble in India. The serious fraud investigation office (SFIO) has reportedly recommended a probe into…
The Serious Fraud Investigation Office (SFIO) in India has recommended a detailed probe into Xiaomi India's business model, alleging irregularities and non-compliance with the Foreign Exchange Management Act (FEMA). According to Reuters, the SFIO's investigation would examine Xiaomi's movement of funds, mandatory investment approvals post-2020, and possible violations of India's foreign direct investment (FDI) rules.
The proposed inquiry is based on complaints and inputs received from the commerce ministry. SFIO has drafted a 21-point investigation framework, which could include summoning company executives if necessary. Xiaomi reportedly has not received any notice or communication from the SFIO and stated that the company complies with all laws.
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