Amazon And Flipkart Vendors Raided By ED - What's The Case?

The Enforcement Directorate (ED), on Thursday, conducted searches at certain main vendors of e-commerce giants Amazon and Flipkart. According to agency reports citing sources, the searches were conducted under the Foreign Exchange Management Act (FEMA) at 19 premises located in Delhi, Bengaluru, Mumbai, Hyderabad and Panchkula (Haryana).  

ED raids on Amazon, Flipkart vendors - What's the matter?

According to preliminary information, the Enforcement Directorate's action reportedly follows several complaints against Amazon and Flipkart. According to agency reports citing sources, the e-commerce entities were 'violating FDI rules' by directly or indirectly influencing the sale price of goods or services and 'not providing a level playing field for all the vendors'. "ED initiated its FEMA investigation based on several complaints against Amazon and Flipkart. The e-commerce entities providing a marketplace that they are violating FDI rules by directly or indirectly influencing the sale price of goods or services and not providing a level playing field for all the vendors… The investigation is focused on determining the extent of these alleged violations," ED said, agencies cited.

ED also inspected documents and took copies of some vendors the names of whom were not disclosed. "A probe has been initiated by the federal agency under the provisions of the Foreign Exchange Management Act (FEMA) after it received several complaints against the two large e-commerce companies where it is alleged that they were violating India's FDI (foreign direct investment) rules by directly or indirectly influencing the sale price of goods or services and not providing level playing field for all the vendors," news agency PTI cited sources as saying.