New Delhi [India], November 7 (HBTV): The Enforcement Directorate (ED) on Thursday conducted searches under the Foreign Exchange Management Act (FEMA) at 19 premises of major vendors for e-commerce giants Amazon and Flipkart across multiple cities, including Delhi, Bengaluru, Mumbai, Hyderabad, and Panchkula (Haryana).
The raids are part of an ongoing investigation initiated by the ED following several complaints against Amazon and Flipkart. The allegations suggest that Amazon and Flipkart, through their marketplace platforms, are violating Foreign Direct Investment (FDI) rules, according to the federal agency.
As per the agency, Amazon and Flipkart are accused of directly or indirectly influencing the sale prices of goods and services and not providing a level playing field for all vendors. The agency stated that its investigation aims to determine the extent of these alleged violations.
"ED initiated its FEMA investigation based on several complaints against Amazon and Flipkart. The e-commerce entities, by providing a marketplace, are allegedly violating FDI rules by directly or indirectly influencing the sale price of goods or services and not providing a level playing field for all vendors," it added.
(ANI)