Xiaomi Global VP Manu Kumar Jain summoned by Enforcement Directorate: Report

Xiaomi Global Vice President and former India head were summoned by the Enforcement Directorate (ED), according to a recent report. The report from Reuters cites two sources who claimed to have direct knowledge of the matter. Jain has been summoned in an investigation to decide whether the company’s business practices conformed with Indian foreign exchange laws.

The report suggests that Xiaomi has been under the scanner since February and in past few weeks the ED has asked Manu Kumar Jain to appear before its offices. Jain is based out of Dubai and currently holds the position of vice president. He was in India when the ED summoned him, according to the report.

Xiaomi spokesperson claimed that the company abides by all the Indian laws and was also “fully compliant with all the regulations.”

“We are cooperating with authorities with their ongoing investigation to ensure they have all the requisite information,” the statement said.

Xiaomi offices were raided by the Income Tax department in the month of December last year. That was a separate case of tax evasion. Another Chinese brand that faced raids from the IT department was Oppo.

One of the two sources claimed that the ED is investigating Xiaomi India’s relationship with its parent company Xiaomi. The contract manufacturers of the company are also being looked into this investigation, according to the report.

The second source claimed that the ED has already sent out a notice to Xiaomi’s Jain asking for company documents back in the month of February. The data that was demanded included details of foreign funding, shareholding and funding patterns, financial statements, and information about key executives running the business.

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