On Thursday, the Enforcement Directorate (ED) carried out raids on many e-commerce companies including Amazon and Flipkart. Emergency Department raids were carried out at many locations in different states of the country. ED has taken action in violation of the Foreign Exchange Management Act (FEMA). According to sources, this step was taken following the investigation by the Competition Authority of India.
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ED is looking for around 21 facilities of top sellers Amazon and Flipkart in 4 cities of Delhi, Bengaluru, Mumbai and Hyderabad under the Foreign Exchange Management Act. ED initiated its FEMA investigation based on multiple complaints against Amazon and Flipkart. In reality, these e-commerce companies are violating FDI norms. E-commerce entities that provide marketplaces do not directly or indirectly influence the sales price of goods or services and do not provide a level playing field to all sellers.
FEMA violation of approximately 50 billion rupees
ED has taken action against the e-commerce subsidiaries of Amazon and Flipkart. This includes many companies like Apirio Retail, Darshitha Retail, Ashiana Retail and Shreyas Retail. There is a FEMA violation case of approximately Rs 50 billion against e-commerce companies.
