India’s Serious Fraud Investigation Office (SFIO) recommends a detailed investigation into Xiaomi’s business in India. An internal document reviewed by Reuters describes examining how funds move through Xiaomi’s Indian operations, and whether the company obtained approvals required under rules governing foreign investment.
Sources also state that the proposed work would include reviewing relevant financial statements and interviewing company officials, alongside assessing whether Xiaomi’s business activities comply with applicable regulations. The Times of India reports that the SFIO’s recommended probe targets Xiaomi’s business model and adherence to foreign investment requirements. Xiaomi says it has not received any official notice about the investigation.
Both outlets frame the development as a recommendation rather than a confirmed action. The final decision is described as resting with India’s Ministry of Corporate Affairs, which would need to approve any investigation following the SFIO’s recommendation.
