SFIO recommends probe into Xiaomi India over foreign investment rules
Xiaomi India might be facing a new investigation; India's Serious Fraud Investigation Office (SFIO) wants to look into whether the company broke foreign investment rules and followed proper business practices, especially after 2020 when India tightened regulations for Chinese companies.
The proposed/recommended probe is awaiting approval from the Ministry of Corporate Affairs.
Xiaomi ownership and online sales arrangements
The SFIO plans to dig into Xiaomi's ownership structure, how much control foreign investors really have, and whether Xiaomi kept things transparent in its financial records.
It is also eyeing Xiaomi's online sales through Amazon and Walmart-owned Flipkart, as well as its arrangements with Indian sellers and launch partners, to see if those broke any e-commerce or investment policies.
For its part, Xiaomi says it hasn't done anything wrong and is following Indian law, but if this probe goes ahead, it adds to its ongoing troubles like frozen assets and shrinking market share in India.