Xiaomi assures cooperation with ED probe over business practices
Apr 13, 2022
New Delhi [India], April 13 : Xiaomi, the Chinese smartphone company, on Wednesday assured cooperation in the ongoing investigation in a probe linked to the firm's business practices in the country, stating it's fully compliant with all the Indian laws.
"Xiaomi is a law-abiding and responsible company. We give paramount importance to the laws of the land. We are fully compliant with all the regulations. We are cooperating with authorities with their ongoing investigation to ensure that they have all the requisite information," Xiaomi Spokesperson said.
Earlier in the day, ED summoned Manu Kumar Jain, Xiaomi's former India managing director, in a probe linked to the firm's business practices in India.
The ED started an investigation against the firm in February this year on the basis of specific inputs and asked the former India head of China's Xiaomi to respond whether the company's business practices conformed with Indian foreign exchange laws.
Jain, currently a global vice president at Xiaomi, based out of Dubai, was currently in India, the sources said, though the purpose of his visit was not clear.
ED actions indicate its widening scrutiny of the Chinese smartphone maker, whose India office was raided in December last year in a separate investigation over alleged income tax evasion. Some other Chinese smartphone makers were also raided at the time.
As per sources, the ED is probing the existing business structures between Xiaomi India, its contract manufacturers and its parent entity in China, as well as various other aspects, including funds, and flows between Xiaomi India and its parent entity.
Xiaomi is among the biggest of India's smartphone sellers and the firm reportedly was on top in selling smartphones in India in 2021 followed by South Korea's Samsung Electronics. Xiaomi also deals in other tech gadgets in India, including smartwatches and televisions.
