ED slaps Rs10,600-cr notice on Flipkart for flouting rules
The Enforcement Directorate (ED) has issued a show-cause notice of about Rs 10,600 crore to e-commerce major Flipkart and its promoters for alleged violation of the foreign exchange law, official sources said on Thursday.
They said the notice under various sections of the Foreign Exchange Management Act (FEMA) was issued to 10 persons last month that includes Flipkart, its founders Sachin Bansal and Binny Bansal, among others. Flipkart said it was cooperating with the ED in this investigation.
The case of alleged FDI rules violation against Flipkart has been under the ED scanner since 2012 and the agency, according to official sources, has found alleged violations of the FEMA under various counts, including an instance of transfer and issue of security to a person or entity outside India.
In 2018, US-based retail giant Walmart had picked 77% stake in Flipkart for $16 billion.
TNS
