ED Raids Amazon and Flipkart Vendors Amidst FDI Rule Breach Allegations

The Enforcement Directorate is conducting searches at 19 locations linked to Amazon and Flipkart vendors across major Indian cities. The operation follows complaints suggesting the firms are violating Foreign Direct Investment rules by manipulating sale prices and unfairly disadvantaging vendors.

The Enforcement Directorate (ED) launched a series of raids on Thursday, targeting 19 premises associated with main vendors of e-commerce titans Amazon and Flipkart. These operations are being conducted under the Foreign Exchange Management Act (FEMA) across several Indian cities, including Delhi, Bengaluru, Mumbai, Hyderabad, and Panchkula.

This wave of searches forms part of an ongoing investigation by the ED, spurred by multiple complaints filed against Amazon and Flipkart. The allegations accuse the e-commerce giants of breaching Foreign Direct Investment (FDI) regulations on their platforms.

Central to the accusations is the claim that Amazon and Flipkart influence the sale prices of goods and services, creating an uneven playing field for vendors. The ED's investigation seeks to uncover the depth of these purported violations, aiming to ensure compliance with FDI norms, as detailed in statements from the agency.

(With inputs from agencies.)