Flipkart founders to be penalized for alleged FEMA violations
11th August 2021, Mumbai:
Sachin and BinnyBansal, the founders of Flipkartalong with some of the investors are likely to be penalized for alleged violation of FEMA by the e-commerce company.
The ED is currently in the investigation stage and has not established whether there has been a violation or not and has given a chance to 10 entities to respond to its notice. Last month, ED served notices to 10 entities, including the Bansals, Flipkart Online Services, Flipkart India, WS Retail Services, , Accel India Ventures II (Mauritius) and its nominee director SubrataMitra and Tiger Global and its nominee direct Lee Jared Fixel, alleging violation of provisions of FEMA, which governs foreign direct investment.
There are multiple charges against the10 entities. Further, ED has alleged that WS Retail was a “dummy company” set up by the Bansals and made purchases of over Rs10,600 crore from Flipkart Online and Flipkart India in “contravention of the FDI policy” related to wholesale cash and carry business and is liable to pay penalty under FEMA.
TOP 5:
- Highstreet Label 'IKI CHIC' launches new collection 2021
- Amazon JV Indian Seller, Cloudtail to stop operation from May 2022
- Bombay Dyeing’s Q1FY2021-22 net profit declines 35.28%
- Welspun India kicksin Capex cycle lining up Rs. 600 crore for expansion projects
- Arvind X Textile Genesis for traceability in apparel supply chain
