These companies say that they follow the laws of the country. However, the ED has been investigating the allegations against these companies for the last few years. These companies are accused of controlling the inventory of Goods through selected sellers. Under the country’s law, foreign e-commerce companies cannot keep inventory of products sold through their website and can only operate as a marketplace of sellers. Last week, ED raided some sellers of Amazon and Flipkart. A senior government source, who is aware of the case, said that there is a preparation to send summons to the executives of these companies of ED.
This government source said that the documents seized in the ED raids have found evidence that these companies have violated the law related to foreign investment. Along with the analysis of the data received from these sellers, their dealing will also be examined along with e-commerce companies in the last few years. Flipkart’s owner is Walmart, a US big retail company.
In this regard, Amazon, Flipkart and ED did not answer the questions sent by Reuters. Amazon and Flipkart have a major stake in the country’s e-commerce market of about $ 70 billion. According to Datum Logic estimate, Flipkart stake in this market last year about 32 percent and Amazon was about 24 percent. In an investigation into a violation of the law related to the competition against these companies, it has been found that they have full control over the inventory. Many of their sellers are used to show off. Two other sources who are aware of the case said that last week, at least two sellers of Amazon and four sellers of Flipkart were raided.
Download the Gadgets 360 Android app for the latest tech news, smartphone review and exclusive offer on popular mobiles and follow us on Google News.
Retail, Era, Stock, Dealers, Marketplace, Call For, Amazon, Govt, Investigation, Flipkart, Regulation, Ed, Funding