NEW DELHI: The Enforcement Directorate (ED) on Thursday carried out searches at 19 premises linked to some “important” sellers utilizing Amazon and Walmart-owned Flipkart platforms in reference to its probe into alleged violation of overseas funding guidelines, folks acquainted with the event mentioned.
The folks mentioned the searches have been performed in Delhi, Bengaluru, Mumbai, Hyderabad and Panchkula.
A senior ED official mentioned the raids have been a part of the company’s probe for violations of the provisions of the International Alternate Administration Act (FEMA).
“ED initiated a FEMA probe based mostly on a number of complaints in opposition to Amazon and Flipkart, the e-commerce entities… that they’re violating FDI guidelines by immediately or not directly influencing the sale worth of products or providers and never offering a level-playing area for all distributors,” mentioned the senior official, who didn’t need to be named.
The official underlined that the searches came about on premises linked to the “important distributors” of Flipkart and Amazon, and never the 2 e-commerce giants themselves.
Amazon and Flipkart are but to answer requests for his or her feedback.
The searches come greater than a month after the anti-trust physique, Competitors Fee of India (CCI), mentioned Amazon and Flipkart had engaged in anti-competitive practices by favouring choose sellers on their platforms.
ED has been investigating the 2 firms for alleged violation of overseas trade regulation since 2019.
A second ED official who spoke on circumstances of anonymity mentioned the monetary crimes probe company had taken the CCI’s findings into consideration.
CCI began investigating the 2 e-commerce giants in 2019 when merchants physique Delhi Vyapar Mahasangh, an affiliate of the Confederation of All India Merchants (CAIT), petitioned in opposition to Amazon and Flipkart, saying the platforms favour some sellers over others.
Praveen Khandelwal, member of parliament from Chandni Chowk and CAIT secretary basic welcomed the raids. “I welcome the ED’s actions as a step in the precise course. Earlier, the CCI additionally issued penalty notices to Amazon, Flipkart, and their most well-liked sellers for participating in anti-competitive practices which have adversely affected small merchants and Kirana shops,” he mentioned in an announcement.
Khandelwal added that the buying and selling group had filed a number of complaints concerning FDI violations and anti-competitive practices in opposition to quick-commerce firms as effectively.
