In a major move, the Enforcement Directorate (ED) conducted searches across multiple locations associated with e-commerce giants Amazon, Flipkart, and their affiliated entities. The pan-India operation was carried out to investigate potential violations under the Foreign Exchange Management Act (FEMA) and other regulations.
The ED is reportedly looking into allegations of foreign exchange law violations and improper practices linked to these platforms’ business operations. This includes examining financial transactions, business arrangements, and vendor partnerships that may contravene Indian regulations.
Amazon and Flipkart have previously faced scrutiny over alleged regulatory violations related to foreign investment and marketplace operations. Both companies are yet to release statements regarding the recent searches, while the ED’s investigation continues.
