Case Filed against Amazon and Flipkart

Case Filed Against Amazon and Flipkart

Case filed both e-commerce platforms Amazon and Flipkart have found themselves in fresh trouble as the government has asked the Enforcement Directorate (ED) and Reserve Bank of India (RBI) to take actions against both of them for Foreign Direct Investment (FDI) and Foreign Exchange Management Act (FEMA) ..violations.

In the letter dated 22 December, the DPIIT has forwarded 4 complaints — alleged violation of the FDI policy in the deal between Flipkart and Aditya Birla Fashion & Retail; e-commerce players misusing FDI policy in manufacturing for multi-brand retailing of grocery; alleged violation of FEMA rules by Amazon and “blatant violation” of FDI and FEMA loopholes by Flipkart and Amazon.

“The Flipkart group is fully compliant with all applicable laws and FDI regulations in the country. We’re proud that as a homegrown marketplace, we enable lakhs of sellers, MSMEs, kiranas, and artisans to connect with consumers across the country, helping them grow, accelerate their businesses, and making them prosperous,” it said.

“Through our pan-India operations and deep investments in supply chain, physical and digital infrastructure, we create lakhs of direct and indirect employment opportunities and nurture entrepreneurs across the country.

This year, we’ve played a critical role in supporting consumers during the pandemic, delivering packages to their doorsteps, keeping them safe as they practice social distancing while ensuring that MSMEs also continue to remain operational.”

“We’re proud of our work that has helped keep businesses afloat in a challenging year, thereby contributing to economic growth and job creation in India,” it added. “Through our investments in technology and supply chain infrastructure, we are focused on creating efficiencies to deliver more value for all our partners and stakeholders.”

The Competition Commission of India (CCI) approached the Karnataka High Court to vacate the stay of a probe into alleged anti-competitive practices and preferential treatment of sellers among other charges against online retailers Flipkart and Amazon.

The CCI approached the HC almost 2 months after the Supreme Court (SC) refused to entertain the CCI’s plea to vacate the stay on the investigation by Walmart-owned Flipkart and American e-commerce giants, Amazon.

The Karnataka HC had stayed an investigation by CCI after Amazon filed a writ petition in February this year. “The matter is fixed for final hearing on 18 January.

The ED is yet to register a complaint in this matter but is acting upon the orders. Amazon had earlier denied these allegations, emphasizing that they comply with FDI laws. Meanwhile, the Indian government is looking to set up an investigative body to keep an eye on e-commerce entities.