Manu Kumar Jain, former CEO of Xiaomi India, is being investigated for a possible violation of Indian foreign exchange laws, reveals Reuters, citing two sources with direct knowledge.
The executive, currently global vice president and residing in Dubai, UAE, is already in India but has not responded to a request for comment.
Manu Kumar Jain, Xiaomi’s global vice president
The India Application Directorate is looking into the relationship between the Chinese company Xiaomi and its Indian division. The flows of funds between the two entities are under review and this includes royalty payments.
The agency requested documents in February, including details on foreign financing, equity ownership, financing models, financial statements, and key executives running the business, Reuters reported.
The attack on Xiaomi is the umpteenth step that India is taking amid the growing tensions with the neighboring country. Previously, the audit involved a raid on the trademark office in India in a separate investigation into alleged evasion of income tax. Other Chinese producers were also raided.
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