November 17, 2021

EXCLUSIVE India enforcement agency threatens Flipkart, founders with $1.35 bln fine -sources

Small toy shopping cart is seen in front of displayed Flipkart logo in this illustration taken, July 30, 2021. REUTERS/Dado Ruvic/Illustration

NEW DELHI, Aug 5 (Reuters) – India’s financial-crime agency has asked Walmart’s (WMT.N) Flipkart and its founders to explain why they shouldn’t face a penalty of $1.35 billion for alleged violation of foreign investment laws, three sources and an agency official told Reuters.

The Enforcement Directorate agency has been investigating e-commerce giants Flipkart and Inc (AMZN.O) for years for allegedly bypassing foreign investment laws that strictly regulate multi-brand retail and restrict such companies to operating a marketplace for sellers.

The Enforcement Directorate official, who declined to be named, said the case concerned an investigation into allegations that Flipkart attracted foreign investment and a related party, WS Retail,…

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