The Enforcement Directorate (ED) on Thursday (November 7) launched large-scale pan-India search operation against key vendors of major e-commerce platforms Amazon and Flipkart. The searches are being conducted under provisions of the Foreign Exchange Management Act (FEMA) after detection of violations of foreign exchange regulations
The searches under FEMA are being carried out at 19 locations linked to the main vendors. The premises are located in Delhi, Bengaluru, Mumbai, Hyderabad, and Panchkula (Haryana).
According to officials, the ED initiated its FEMA investigation based on several complaints against Amazon and Flipkart. The complaints allege that these e-commerce platforms, which provide marketplaces, are violating Foreign Direct Investigation (FDI) rules by directly or indirectly influencing the sale prices of goods and services, thereby failing to provide a level playing field for all vendors.
