India's Serious Fraud Investigation Office (SFIO) recommended a detailed probe into Xiaomi's business operations. The agency cited alleged irregularities regarding foreign investment compliance and fund movements. The investigation would also scrutinize beneficial ownership and e-commerce practices.
The SFIO drafted the recommendation in May. The proposal currently awaits formal approval from India's Ministry of Corporate Affairs.
Xiaomi stated it has not received any communication from the SFIO. The company maintains that it remains in full compliance with all Indian laws.
This development adds to existing regulatory pressure. Xiaomi currently faces a long-standing asset freeze of over $584 million.