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The Delhi Police has also alleged that NewsClick founder Prabir Purkayastha conspired to sabotage 2019 LS polls.
Dorsey quit his Twitter CEO role in 2021 and the social media platform was purchased by billionaire Elon Musk in 2022
The smartphone maker is accused of making illegal remittance to foreign entities.
The IT Department had passed the order on grounds that the Chinese firm was remitting income abroad in the guise of paying royalty to avoid paying tax in India.
India's financial crime-fighting agency, the Enforcement Directorate, has been investigating Xiaomi since February.
The Enforcement Directorate issued a statement saying Xiaomi's allegations were 'untrue and baseless' and company executives had deposed 'voluntarily in the most conducive environment'.
The action has been taken against Xiaomi Technology India Private Limited. The company (also called Xiaomi India) is a trader and distributor of mobile phones in the country under the brand name of MI.
The statement came as the Indian tax authorities recently launched a large-scale investigation on Chinese-run companies in India.
The smartphone will be available for an upfront price of 1,999 rupees and the rest can be paid via monthly instalments.
Its findings are the latest antitrust setback for Google in India, where it faces several probes in the payments app and smart television markets. The company has been investigated in Europe, the United States and elsewhere.