Exclusive-India’s Serious Fraud Office Recommends ‘Detailed’ Probe Into Xiaomi’s Business in Country
The memorandum cites complaints over funds movement, beneficial ownership and possible FDI breaches, and outlines a 21-point review of Xiaomi’s Indian unit.
- On Wednesday, India's Serious Fraud Investigation Office recommended a probe into Xiaomi for alleged irregularities in its business model and foreign investment compliance, with the government currently examining the memorandum pending Ministry of Corporate Affairs approval.
- Following deadly border clashes in 2020, India tightened scrutiny of Chinese investments, requiring prior government approval for funding; regulators now seek to examine Xiaomi's movement of funds and whether the company obtained mandatory investment approvals.
- Regulators aim to verify beneficial ownership and assess if Xiaomi exerted "de facto control" over Indian sellers, investigating whether preferential product launches on e-commerce platforms "defeated the intent of the FDI policy applicable to e-commerce ."
- Xiaomi has slid to 13% market share in India, down from 19%, with 2025 revenue at $2.52 billion—40% lower than three years ago, while remaining unsuccessful in overturning a $584 million asset freeze.
- Ahead of Chinese President Xi Jinping's expected visit to attend a BRICS summit in India this weekend, Meghav Gupta of Consecro Law noted there is no timeline for the ministry to decide on the probe.
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India Seeks Detailed Xiaomi Probe Over Foreign Investment Compliance
India's Serious Fraud Investigation Office has recommended a detailed investigation into Xiaomi's Indian operations, examining foreign investment compliance, ownership structures, fund transfers and required government ... The post India Seeks Detailed Xiaomi Probe Over Foreign Investment Compliance first appeared on [your]NEWS.
India’s fraud office recommends a detailed investigation into Xiaomi’s local business
India’s Serious Fraud Investigation Office has recommended a detailed investigation into Xiaomi’s business in the country, according to an internal document examining how money moved through the company’s Indian operations and whether it obtained the approvals required for Chinese investment. The document was drafted in May and reviewed by Reuters, which reported its contents on […] This story continues at The Next Web
Deccan Chronicle
India's Serious Fraud Office Recommends 'Detailed' Probe Into Xiaomi's Business in Country
The recommendation from SFIO said the investigation should examine movement of funds and whether Xiaomi sought mandatory investment approvals as required
Amid Regulatory Scrutiny, Xiaomi Faces Potential SFIO Investigation in India
India's Serious Fraud Office has proposed an investigation into Xiaomi for alleged business model irregularities and foreign investment compliance. The investigation arises amidst Xiaomi's declining market share and existing legal challenges. The recommendation considers fund movements and investment approvals following tightened regulations on Chinese investments in India.
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