Xiaomi Faces Proposed Indian Probe Over Alleged Investment Rule Breaches

Reuters, citing a government memorandum, reported that India’s Serious Fraud Investigation Office has recommended opening an investigation into Xiaomi's business in India over alleged violations of its business model and foreign investment rules. The memorandum said the proposed probe should focus on fund flows and whether Xiaomi filed the mandatory investment approvals required by law. It also said the review would examine the beneficial ownership of foreign investors and group entities, and whether any direct or indirect changes in actual ownership or control were properly disclosed and approved. A Xiaomi spokesperson told Reuters the company has not received any notice or communication from the SFIO and said it fully complies with local laws.