ED searches 19 premises linked to main vendors of Amazon and Flipkart under FEMA

The Enforcement Directorate has searched 19 premises across five States linked to the main vendors of Amazon and Flipkart for suspected violation under the Foreign Exchange Management Act (FEMA), according to an agency official.

The searches were carried out in Delhi, Bengaluru, Mumbai, Hyderabad, and Panchkula. “The ED initiated its FEMA investigation based on several complaints against Amazon and Flipkart, the E-commerce entities providing marketplace, alleging that they are violating FDI Rules by directly or indirectly influencing the sale price of goods or services and not providing level playing field for all the vendors,” the official said.

Welcoming the development, BJP MP Praveen Khandelwal from Chandni Chowk in Delhi, and secretary general of the Confederation of All India Traders, said: “India is a vibrant democracy governed by the rule of law and its Constitution. No one can be allowed to bypass or disregard these laws. The Confederation of All India Traders (CAIT), along with several other trade bodies, has been raising these issues for the past few years.”

Mr. Khandelwal said: “Earlier, the Competition Commission of India (CCI) also issued penalty notices to Amazon, Flipkart, and their preferred sellers for engaging in anti-competitive practices that have adversely affected small traders and Kirana stores. In the new Bharat, led by Prime Minister Narendra Modi, no one is above the law. I am hopeful that now the law will take its rightful course and protect the livelihoods of small shopkeepers.”

“This government is committed to ensuring that no entity can harm the trading community. In response to multiple complaints filed by the trading community regarding FDI violations and the anti-competitive practices of quick-commerce companies...we urge both the CCI and the ED to take swift action to prevent any further irreparable damage to the businesses of small traders,” he said.

Published - November 07, 2024 08:13 pm IST