The troubles of the two largest e-commerce companies in India are about to increase. This includes Amazon and Walmart’s Flipkart. According to news agency Reuters, the Enforcement Directorate (ED) has issued a show-cause notice on Flipkart and its founders Sachin Bansal, Binny Bansal, including investors Tiger Global, for violating the Foreign Investment Act. After this, the merchant organization CAT is demanding action on Amazon.
Notice to be replied within 90 days
On the notice, Flipkart has said that it fully complies with Indian laws and regulations. We will fully co-operate with the authority. Flipkart and other parties have to respond within 90 days to the ED’s notice. Let us inform that in 2018, American e-commerce company Walmart bought a majority stake in Flipkart for $ 16 billion.
10 thousand crore rupees will be fined for not answering
According to the report, the ED has said that if there is no response to the notice from Flipkart and their founders, then they can be fined $ 1.35 billion (Rs 10,000 crore). According to the notice, this case is from the year 2009 to 2015.
CAT demands action on Amazon too
The Confederation of All India Traders (CAIT) said that it has been raising its voice against the violation of Foreign Investment Act for e-commerce by Flipkart and Amazon for a long time. In such a situation, the action of ED on Flipkart is absolutely correct. Now waiting for action on Amazon. Because both the e-commerce companies are riding on the same boat.