Xiaomi’s Manu Kumar Jain has been reportedly summoned by the Enforcement Directorate
Xiaomi has once again come under the scanner in India and the company’s former India managing director and current global vice president, Manu Kumar Jain has been reportedly summoned by the Enforcement Directorate (ED).
According to a Reuters report, the financial agency is currently investigating whether the company’s business practices conform with India’s foreign exchange laws.
The above report, citing two sources familiar with the investigation, revealed that the company has been under investigation since February. The report further added that Jain was recently summoned by the ED to appear before its officers.
The source added that Jain, who is based in Dubai, was recently in India, however, the purpose of his visit was not known.
“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 and are confident of the same. We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information,” a Xiaomi spokesperson said in a statement to Business Insider.
This is not the first time that the Chinese smartphone maker has come under scrutiny. It was also under investigation by the Income Tax department and raids were conducted at some of its premises, along with other companies like Oppo and OnePlus.
The ED is reportedly investigating the company’s existing business structure between Xiaomi India, its manufacturers and its parent company in China. More particularly, the investigation is regarding the flow of funds between Xiaomi India and its parent, based in China.
