According to a recent report, the Vice President of Xiaomi Global and the former head of India has been summoned by the Enforcement Directorate (ED). report good Reuters cited two sources who claimed to have direct knowledge of the matter. Jain has been summoned in an investigation to determine whether the company’s business dealings are in line with Indian forex laws.
Reports suggest that Xiaomi has been under investigation since February and over the past few weeks the ED has asked Manu Kumar Jain to appear before its offices. Jain is based out of Dubai and is currently holding the position of Vice President. According to the report, he was in India when the ED summoned him.
A Xiaomi spokesperson claimed that the company complies with all Indian laws and is “fully compliant with all regulations.”
“We are cooperating with the authorities in their ongoing investigation to ensure they have all the necessary information,” the statement said.
In December last year, the Income Tax Department raided the offices of Xiaomi. It was a different case of tax evasion. Another Chinese brand that faced raids from the IT department was Oppo.
One of the two sources claimed that the ED is probing Xiaomi India’s relationship with its parent company Xiaomi. According to the report, the contract manufacturers of the company are also being looked into in this investigation.
Another source claimed that the ED has already sent a notice to Jain of Xiaomi asking for the company’s documents back in the month of February. The data sought included information on foreign funding, shareholding and funding patterns, financial statements and key executives running the business.
Xiaomi Global VP Manu Kumar Jain summoned by Enforcement Directorate Post: Report first appeared on BGR India.
