Wednesday, November 30, 2022
Home Top Stories ED will take action against Amazon, Flipkart for FDI, FEMA violations

ED will take action against Amazon, Flipkart for FDI, FEMA violations

NEW DELHI | The central government has directed the Enforcement Directorate (ED) and Reserve Bank of India (RBI) to take necessary action against Amazon and Walmart-owned Flipkart. The Confederation of All India Traders (CAT) has been demanding action against these companies for a gross violation of the FDI policy and the Foreign Exchange Management Act, 1999 (FEMA) by these companies. On the basis of this demand, the government has taken this strict cognizance.

National President of CAT B. C. Bhartia and General Secretary Praveen Khandelwal said that the move has been taken by CAT on the basis of several complaints made recently against Flipkart owned by Amazon and Walmart to Union Commerce Minister Piyush Goyal.

He informed that the Department of Industry Promotion and Internal Trade (DPIIT) in its letter issued in December has asked both the Enforcement Directorate and the Reserve Bank of India to take necessary action against Amazon and Flipkart.

Bhartia and Khandelwal said that in their communication to ED and RBI, DPIIT has put forward four complaints of CAT.

CAT alleges that these e-commerce companies have grossly violated foreign investment policies. Also, these companies have violated the rules of the Foreign Exchange Management Act 1999 (FEMA).

Bhartia said that FDI rules were directly violated in the deal between Flipkart and Aditya Birla Group.

Kat said that next year merchants from all over the country would celebrate the Year of Trade Honor against e-commerce.

Most Popular

close