E-commerce Giants Under Scrutiny for FDI Violations

Commerce Minister Piyush Goyal criticized e-commerce giants for violating Foreign Direct Investment (FDI) norms. He highlighted concerns about predatory pricing and questioned Amazon's recent USD 1 billion investment in India. The Enforcement Directorate is investigating these violations, probing several vendors linked to major platforms.

Commerce Minister Piyush Goyal has raised concerns over foreign direct investment norms being flouted by e-commerce companies operating in India. During a recent address, he emphasized that these companies must adhere to the country's laws, both in letter and spirit.

Goyal's statements come amidst ongoing investigations by the Enforcement Directorate into alleged FDI violations by major e-commerce players like Amazon and Flipkart. The probe has seen searches across multiple states and involves key vendors associated with these platforms.

The Confederation of All India Traders (CAIT) also alleges these firms hurt small retailers by not respecting existing rules, which mandate that e-commerce entities should only facilitate third-party sellers without holding inventory or influencing sales pricing.

(With inputs from agencies.)