India’s fraud office recommends a detailed investigation into Xiaomi’s local business

India’s Serious Fraud Investigation Office has recommended a detailed investigation into Xiaomi’s business in the country, based on an internal SFIO document that examines how money moved through Xiaomi’s Indian operations and whether the company obtained any improper financial advantages. The document traces fund flows, cross-border transactions, and the governance of local subsidiaries, but does not publicly disclose its conclusions. The SFIO’s recommendation signals elevated regulatory scrutiny of foreign tech firms in India, potentially expanding the inquiry to areas such as accounting practices, transfer pricing, and intercompany invoicing. Officials familiar with the matter say the objective is to determine whether Xiaomi complied with Indian laws and if the transactions were conducted in a transparent and compliant manner. The development could influence Xiaomi’s operations in India and reflects a broader regulatory emphasis on accountability within the technology and consumer electronics sectors, as authorities signal tighter oversight of foreign entities and their financial conduct. Details of next steps or timelines were not disclosed.