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Xiaomi under ED radar as former India MD Manu Kumar Jain summoned

Media reports suggest that the agency launched an investigation into the Chinese firm in February this year based on some specific inputs, and the former India head of China's Xiaomi Corp, Manu Jain, has been asked to share details related to the investigation into whether the company's business practises complied with Indian foreign exchange laws.

Xiaomi under ED radar as former India MD Manu Kumar Jain summoned gcw
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New Delhi, First Published Apr 13, 2022, 1:27 PM IST

The Enforcement Directorate has asked Manu Kumar Jain, Xiaomi's former India managing director, to appear before it in an inquiry related to the firm's business activities in accordance with Indian foreign currency rules. The ED is said to have summoned Jain previously, requesting him to join the probe into the Chinese business.

Media reports suggest that the agency launched an investigation into the Chinese firm in February this year based on some specific inputs, and the former India head of China's Xiaomi Corp, Manu Jain, has been asked to share details related to the investigation into whether the company's business practises complied with Indian foreign exchange laws.

Jain, who is presently the global vice president of Xiaomi located in Dubai, was in India, according to reports, however the reason of his visit remained unclear.

The actions of the probe agency ED indicate that it is expanding its inquiry against the Chinese smartphone maker, whose India headquarters was seized in December last year in a separate investigation into potential income tax fraud. At the time, other Chinese smartphone manufacturers were also raided.

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The Enforcement Directorate is looking at the current business arrangements between Xiaomi India, its contract manufacturers, and its parent entity in China, as well as a variety of other issues like as cash transfers between Xiaomi India and its parent entity.

China's Xiaomi is one of India's largest smartphone vendors, and the company is expected to be the leader in smartphone sales in 2021, followed by South Korea's Samsung Electronics. In India, Xiaomi also sells other types of technology, such as smartwatches and televisions.

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