ED warns of imposing Rs 10,000 crore fine on Flipkart, now demands action on Amazon

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.

Latest articles

Debt Recovery Ecosystem in India, Impact of Phygital Debt Collection, and the Way Forward: Mobicule Technologies’ Siddharth Agarwal

In the past few years, India has observed a massive transformation across industries owing to digitisation, new communication channels, and stringent regulatory...

HMD Global Launches Nokia C32: Fashionable Design, Powerful Imaging, and Android 13!

HMD Global, the leading manufacturer of Nokia phones, has announced the launch of the Nokia C32, the latest addition to the popular...

Indian govt likely to reopen semiconductor application worth $10 billion to attract global chip companies

A day after India's IT Minister Ashwini Vaishnaw interacted with the leadership team of  Semiconductor Equipment and Materials International (SEMI), which is the...

Gautam Adani Climbs to Top 20 on Billionaires List with a Net Worth of $64.2 Billion

Indian business tycoon Gautam Adani, chairman of the Adani Group, has achieved a significant milestone by reentering the top 20 on the...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here