An Indian court said it will investigate allegations by Ericsson that Chinese vendor Xiaomi is going against an order that banned the sale of some of its smartphones in the country, the Financial Times reported.

In December, Ericsson filed a complaint with the Delhi High Courts after Xiaomi failed to respond to six requests for patent royalties, resulting in a ban on the import and sale in India of phones powered by Taiwanese chipmaker MediaTek.

Devices using processors from Qualcomm can still be sold.

Xiaomi said the phones are being offered unofficially via a third-party website called Xiaomishop.com, against which it plans on taking legal action.

The company mainly sells its phones via Indian ecommerce retailer Flipkart. Last month it said it will also offer its Redmi Note smartphones at more than 100 shops belonging to the country’s largest operator Bharti Airtel in six cities.

If the court rules against it, Xiaomi will have to pay higher fees to suppliers and other low-cost smartphone makers in the country could also come under scrutiny, according to analysts.

Xiaomi secured a valuation of more than $40 billion at its most recent fundraising round and, despite the ban, it says it has high expectations for India, as the last few months of 2014 were very encouraging, quickly selling out of the estimated 200,000 units it was shipping there each week.

According to market research firm Counterpoint, Xiaomi’s smartphone shipments in India grew almost 250 per cent quarter-on-quarter, but the vendor failed to make it to the top five smartphone vendors during the three months.