The ED has raided 15 to 16 locations under the Foreign Exchange Regulation Act on some sellers associated with famous e-commerce companies like Amazon and Flipkart. Official sources say that the Competition Authority of India (CCI) has conducted an investigation. The companies have allowed sellers to misuse the platform by violating local competition rules.
The Competition Commission’s investigation revealed that these companies gave huge discounts to such sellers and violated many rules, causing losses to other companies. Also, PTI reported that some sellers are being investigated who were violating the rules by giving discounts on Amazon and Flipkart and paying money. According to the information received so far, raids have been conducted in many cities of Delhi-NCR, as well as in some other areas.
The ED team raided several cities including Delhi, Gurugram (Haryana), Hyderabad (Telangana) and Bengaluru (Karnataka). This investigation is being conducted under the Foreign Exchange Management Act, i.e. FEMA. ED is investigating whether the sellers who are accused of misusing Flipkart and Amazon have made any illegal financial transactions. At present, ED or any government body has not made any statement on this matter; Flipkart and Amazon have also not made any announcement.
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