ED Notices to Flipkart, Founders

The Enforcement Directorate (ED) has served show-cause notices to Flipkart, it founders and prominent investor Tiger Global, asking why the ecommerce marketplace should not be fined $1.35 billion for allegedly violating Indian laws, people aware of the matter told ET.

The notice has been sent to ten parties including the Walmart-owned company’s founders Binny Bansal and Sachin Bansal and each of them is expected to submit their responses to the agency, the sources said.

ET could not independently verify the exact nature of the lapses by Flipkart or its founders.

A Reuters report on midnight Wednesday said the ED has begun a probe involving Flipkart and WS Retail, a related party of the ecommerce marketplace that used to be a seller on its platform between 2009 and 2015, over alleged violation of foreign direct investment (FDI) norms.

WS Retail is on longer a seller on Flipkart and, as per the Reuters report, ceased its operations in 2015.

A Flipkart spokesperson said, “Flipkart is in compliance with Indian laws and regulations, including the FDI regulations .” S-ET

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