ED Raids Amazon, Flipkart's Major Retailers In Delhi, Bengaluru, Mumbai, More: Report

The Enforcement Directorate (ED) has conducted pan-India searches at the main vendors of e-commerce giants Amazon India and Walmart-backed Flipkart, says a report by MoneyControl. 

The ED has initiated a Foreign Exchange Management Act (FEMA) investigation based on several complaints against the two e-commerce majors, alleging that they are violating foreign direct investment (FDI) rules by directly or indirectly influencing the sale price of goods or services and not providing a level playing field for all vendors.

Amazon, Flipkart Sellers Under ED Scanner

The sellers related to Amazon.in and Flipkart that are under the ED's scanner include Appario Retail, Shreyash Retail, Darshita Retail, and Ashiana Retail. 

The ED searches were conducted at 19 premises located in Delhi, Bengaluru, Mumbai, Hyderabad, and Panchkula (Haryana), according to the sources.

News agency PTI reported that the action is related to the financial transactions being done by some of the "preferred" vendors and sellers who do business through Amazon India and Flipkart's e-commerce platforms.

This development comes just weeks after the Competition Commission of India (CCI) found that the two companies and their sellers violated competition laws by giving preference to select sellers on their platforms.