India’s Serious Fraud Office Urges Probe Into Xiaomi’s Business in Country

India’s Serious Fraud Office has recommended an investigation into Xiaomi for alleged irregularities in its business model and compliance with foreign investment law. The recommendation comes amid Xiaomi’s declining market share in India due to fierce competition from Apple and Samsung, along with various tax demands and royalty payment disputes. The investigation will focus on the movement of funds and whether Xiaomi obtained mandatory investment approvals following heightened scrutiny of Chinese investments post-2020 border clashes with India. The government is reviewing the memorandum drafted in May, signaling potential trouble for Xiaomi in the Indian market. Xiaomi, once India’s top-selling smartphone…