Amazon Flipkart
ED has raided the offices of many sellers selling products on Amazon-Flipkart. These sellers are accused of violating foreign investment regulations. ED has raided the offices of many vendors in Delhi, Mumbai, Bengaluru and Hyderabad. This action has been taken against sellers who sell products on the e-commerce platform following the decision of the antitrust body CCI, in which the possibility of them committing irregularities in foreign investment has been expressed. CCI has sent notices to e-commerce companies in this regard several times.
PMLA violation allegation
According to the Reuters report, ED has raided the offices of many sellers selling products on these two leading e-commerce platforms. They have been accused of violating foreign exchange rules. CCI had warned these sellers of this several times. Now the Enforcement Directorate (ED) has started investigating the case regarding violation of PMLA i.e. money laundering norms.
According to the report, Education Department officials say there is a possibility of sellers selling products on e-commerce platforms like Amazon and Flipkart violating foreign exchange rules. Will ED investigate how the prices of products sold on e-commerce platforms are indirectly affected? How these companies give preference to some sellers on their platform and the price of the product is reduced.
Raid on 19 locations
CCI had also earlier issued notice to these e-commerce companies regarding granting preference and had said that it was against fair competition. According to the report, ED has raided 19 places in the country. However, the name of these places has not yet been revealed. Both e-commerce companies have not yet issued any statement. In recent years, both e-commerce platforms have grown rapidly. Both companies have contributed significantly to the growing e-commerce sector in India.
According to the report, ED has been examining the business modules of these two companies for several years. Under Indian law, e-commerce platforms should act as a neutral marketplace and have no direct control over product inventory. ED is investigating violation of foreign direct investment norms from this angle.
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