India | Recommendation for Expanded Investigation into Xiaomi’s Operations | CUAC

Civil Union – Follow-up India’s Serious Fraud Investigation Office (SFIO) has recommended a comprehensive investigation into Xiaomi’s operations in the country over concerns regarding the company’s compliance with foreign investment laws. According to a document reviewed by Reuters, the proposed investigation would examine the ownership of foreign investors and beneficial owners, the movement of funds, regulatory approvals, and any direct or indirect changes in ownership or control, as well as potential violations of India’s foreign investment rules. The recommendation comes as Xiaomi faces a separate case involving the freezing of approximately $584 million in its bank assets in India since 2022, following allegations of illegal financial transfers, which the company denies. Xiaomi told Reuters that it had not received any official notice or communication from the SFIO and said that it complies with Indian laws. The SFIO’s recommendation still requires approval from India’s Ministry of Corporate Affairs before the investigation can formally begin. Source: Reuters