- By Sahelee Rakshit
- Thu, 07 Nov 2024 04:02 PM (IST)
- Source:JND
As part of a Foreign Exchange Management Act (FEMA) investigation, the Enforcement Directorate raided a few sellers who do business on online e-commerce platforms like Amazon and Flipkart on Thursday, according to official sources, cited by Hindustan Times.
According to the HT report, the central agency raided at least 15 to 16 locations that belong to these vendors.
According to officials, the Competition Commission of India's antitrust investigations revealed that Amazon and Flipkart violated local competition rules by giving priority to certain sellers, favouring particular listings, and drastically discounting items, harming other firms.
According to sources who spoke to PTI, the move concerns the financial transactions carried out by some of the "preferred" merchants and suppliers that conduct business on e-commerce sites such as Amazon and Flipkart.
This investigation, carried out in accordance with the FEMA, involved searches at many sites in Delhi, Gurugram (Haryana), Hyderabad (Telangana), and Bengaluru (Karnataka).
Through this probe, the ED is looking into the misuse of e-commerce platforms such as Amazon and Flipkart by merchants who may have participated in illicit financial practices.
The regulator and e-commerce firms did not immediately respond.
Amazon and Flipkart have already been the subject of scrutiny in the nation for their business methods. By giving preference to some vendors on their platforms, Amazon and Flipkart allegedly violated local competition rules, according to a September investigation by the Competition Commission of India (CCI).