The Enforcement Directorate (ED) has issued a notice to Flipkart, its founders, and nine others for alleged forex offences. They’ve been asked to explain why they shouldn’t face a $1.35 billion penalty for allegedly breaking foreign investment restrictions. According to ED sources, between 2009 and 2015, Flipkart broke FEMA laws when seeking foreign investment.
“Flipkart complies with all Indian rules and regulations, including those governing foreign direct investment (FDI). We will work with the authorities as they investigate this matter, which pertains to the years 2009 to 2015, as stated in their notice “Flipkart stated in a statement.
For quite some time, the agency has been looking into e-commerce behemoths Flipkart and Amazon.com Inc for allegedly circumventing foreign investment restrictions that closely control multi-brand retail and limit such firms to maintaining a marketplace for merchants.
According to ED sources, the case involved an inquiry into charges that Flipkart recruited foreign investment and then sold goods to customers on its shopping platform, which was illegal under the law.