ED summons former India head of Chinese phone maker Xiaomi: Report

According to the report, the central agency had started investigating Xiaomi in February, and in the past few weeks, it sent a summon to the former company's former managing director in India.

Jain is now a global vice president at Xiaomi based out of Dubai, the Reuters report said, adding that he was in India currently, though the purpose of his visit wasn't clear.

Asked about the investigation, a Xiaomi spokesperson said that the company fully abides by the Indian laws and was "fully compliant with all the regulations", according to the report.

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

The offices of Xiaomi and some other Chinese phone makers were raided in December for alleged income tax evasion, indicating that these companies are increasingly brought under the scanner.

According to the report, the ED is looking into existing business structures between Xiaomi India, its contract manufacturers and its parent entity in China.

The source also told Reuters that fund flows between Xiaomi India and its parent entity, including royalty payments, were being checked.

The report, citing sources, further said ED through its notice in February asked Jain to provide various company documents, including details of foreign funding, shareholding and funding patterns, financial statements, and information of key executives running the business.