BENGALURU - The Indian unit of Chinese smartphone maker Xiaomi Corp said on Friday it has appointed founding member Alvin Tse as its general manager, a change of guard as the company faces government scrutiny over its business practices.

Tse, a British national who was also the former general manager of Xiaomi Indonesia, has helped the company expand into many global markets, Xiaomi India said in a tweet.

The organisational rejig will also have Anuj Sharma rejoin the company as the chief marketing officer.

The development comes nearly two months after India's federal financial-crime fighting agency summoned former Xiaomi India head Manu Kumar Jain in an investigation on whether the company's business practices conformed with Indian foreign exchange laws, two sources had told Reuters.

The Enforcement Directorate also seized $725 million from the company's local bank accounts after a probe found the smartphone maker had made illegal remittances to foreign entities by passing them off as royalty payments.

However, an Indian court has put the agency's decision to seize the amount on hold following a legal challenge by Xiaomi.

In India, Xiaomi has seen its share of the domestic smartphone market surge to 24% in 2021 from 6% in 2016, making it the market leader, according to Counterpoint Research.

(Reporting by Rama Venkat in Bengaluru; Editing by Sherry Jacob-Phillips)