Center Directs ED, RBI To Take Action against Amazon, Flipkart for FDI, FEMA violations

  • In an on-going war between between the e-commerce companies and trading companies of India, current development has taken place where Government of India has directed the Enforcement Directorate and Reserve Bank of India to take necessary action against the Amazon and Walmart-owned Flipkart.

The Centre has taken strict steps against several complaints received not in favour of e-commerce giants. These complaints were made by the Confederation of All India Traders (CAIT) for the rigorously violating the FDI policy and Foreign Exchange Management Act, 1999 (FEMA) by these companies.

CAIT said that the DPIIT has mentioned four complaints against these companies which includes the violation of FDI policy in deal between Flipkart and Aditya Birla Group, FDI policy violation related to FDI in manufacturing used for multi-branding  retailing by various e-commerce companies, violation of FEMA rules by Amazon and Flipkart.

Read also: ‘By the end of 2021, we will reach pre-covid level”, Says NITI Aayog Vice Chairman