The ED seized around $725 million belonging to Xiaomi in April.
Xiaomi India’s Chief Business Officer Raghu Reddy is leaving the company to “pursue different growth opportunities externally,” the Chinese smartphone manufacturer said. Reddy’s move comes as Xiaomi faces growing regulatory scrutiny in India along with increasing competition from other homegrown brands as well as Samsung.
Reddy “played an influential and significant role in Xiaomi becoming the #1 Smartphone and Smart TV brand in India,” according to a report by TechCrunch that cited the Chinese company. “As he moves on to pursue different growth opportunities externally, we wish him all the best for his journey,” it added.
Reddy, who is currently serving a notice period, previously headed online sales at the company. He was promoted to the role of Chief Business Officer in 2020. His resignation comes at a time when Xiaomi is facing intensifying regulatory scrutiny by the Indian government.
Since February, the Enforcement Directorate has been investigating Xiaomi for violation of the Foreign Exchange Management Act for illegally transferring funds abroad “in the guise of royalty payments.” The ED seized around $725 million belonging to the company in April. However, the company has denied any wrongdoings and the case is still pending in court.
Over the last few years, the Indian government has banned several Chinese apps as they were deemed a threat to national security and were accused of intentionally gathering sensitive user data. These apps include Battlegrounds Mobile India (BGMI), TikTok, WeChat, Shein, and some others developed by Xiaomi like Mi Browser, Mi Browser Pro, Mi Community, and Mi Video Call.