E-commerce Giants Under Scrutiny for Investment Violations

The Enforcement Directorate is investigating major e-commerce vendors for potential foreign investment violations. Allegations suggest platforms like Amazon and Flipkart engage in unfair pricing practices, adversely impacting small retailers and creating tax-evading grey markets. This probe highlights concerns about competitive fairness and economic impacts.

The Enforcement Directorate conducted raids against prominent vendors on major e-commerce platforms, including Amazon and Flipkart, to probe foreign investment violations, sources revealed Thursday.

A total of 19 locations across Delhi, Gurugram, Panchkula, Hyderabad, and Bengaluru were targeted as part of this investigation under FEMA, addressing complaints about the giants' alleged violation of FDI norms.

Accusations focus on these companies influencing product prices and undermining fair market competition. The Confederation of All India Traders and AIMRA previously petitioned against these firms, blaming them for price manipulation and tax evasion that harm small retailers.

(With inputs from agencies.)