SFIO Recommends Detailed Probe Into Xiaomi India's Business Model

9 Sept 2026, 10:04 pm · 3d ago · 1 min read · Inc42

India's Serious Fraud Investigation Office has recommended a comprehensive probe into smartphone manufacturer Xiaomi India over alleged irregularities in its business operations and compliance with the Foreign Exchange Management Act. The proposal, currently under examination by the Centre following inputs from the Ministry of Commerce, outlines a 21-point framework. The investigation aims to scrutinise Xiaomi's beneficial ownership, fund transfers between related entities, ecommerce partnerships, and compliance with foreign direct investment rules post-2020 border tensions with China. SFIO also flagged potential material misstatements in the company's financial audits, seeking coordinated action across government agencies.