Indian regulator summons former Xiaomi India head in probe

Asian Tech Press (Apr. 13) -- A Indian regulator has summoned the former head of Xiaomi India to investigate whether the company's business practices complied with the country's foreign exchange laws, Reuters reported.

The Enforcement Directorate, India's federal financial-crime fighting agency, has been investigating Chinese smartphone maker Xiaomi Corp. since at least February this year, and in recent weeks has asked Manu Kumar Jain, Xiaomi's former managing director in India, to be questioned by officials, the sources said.

Jain, now a global vice president at Xiaomi based in Dubai, was currently in India, but the purpose of his visit to India is unclear, the sources said.

When asked about the investigation, a Xiaomi spokesperson said the company complies with all Indian laws and is "fully compliant with all regulations."

Xiaomi said in a statement, "We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information."

According to market research firm Counterpoint Research, Xiaomi remains India's largest smartphone seller in 2021, with a 24% market share, and South Korea's Samsung Electronics is in second place with 18% share.

In addition to smartphones, Xiaomi also sells other technology products in India, including smartwatches and TVs.

Seemingly unaffected by the rumors, Xiaomi announced on Tuesday that its latest flagship phone, the Xiaomi 12 Pro, will be launched in India on April 27.

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