FEMA violation: ED raids suppliers of e-commerce sites
The Enforcement Directorate (ED) on Thursday conducted pan-India searches at the premises of main vendors of e-commerce majors Amazon and Flipkart, in connection with its Foreign Exchange Management Act (FEMA) violation investigation based on several complaints against the two e-commerce entities.
The anti-money laundering agency had received complaints that the two entities were allegedly 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 searches were conducted at 19 premises located at Delhi, Bengaluru, Mumbai, Hyderabad and Panchkula (Haryana), ED sources said.
The raids are related to the financial transactions being done by some of the “preferred” vendors and sellers who do business through Amazon and Flipkart like e-commerce platforms.
